Algorithmic Game Theory

Citation

Hutton, D.M. (2008), "Algorithmic Game Theory", Kybernetes, Vol. 37 No. 7, pp. 1069-1070. https://doi.org/10.1108/03684920810884423

This is a very substantial text which has four editors and more than 40 contributors to its chapters. It is a justifiable project because game theory has played an enormous part in so many areas. In particular, cyberneticians and systemists will know of its importance in computer systems developments, and management scientists are aware of its impact on e‐commerce issues. Its importance in its influence on the internet and other related areas is now well appreciated.

In order to fullfil this need to learn more about the theory and its applications in so many important areas of endeavour it was an obvious requirement that only the leading experts should be invited to contribute. The brief for the editors was to take this book from the very beginnings of the development of game theory and to follow its progress through to the present‐day usage and in particular, the current applications.

To do this, the editors have included chapters on:

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  Algorithmic methods for equilibria.

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  Design of mechanisms.

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  Combinatorial auctions.

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  Incentives and pricing.

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  Cost sharing.

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  Information markets.

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  Cryptography and security.

One of the problems of a book that is made up of contributed chapters is that despite the efforts of its editors it loses structure and continuity, In consequence this comprehensive book of nearly 800 pages is not one that will be read from cover to cover by an avid reader. Rather it is a tome to be dipped into by researchers and developers who would want to know more about certain aspects of the field and particular “state‐of‐the‐art” issues and applications. This presumably, is what the editors and publishers foresaw in planning the project. Whilst the first chapters have a; lasting relevance the later ones may well date and have a limited life span. This, of course, is very much the case of applied theories which have an importance in mathematics but applications that change as new technologies and systems evolve.

This obviously is a title for the reference shelves of the institutions and organisation that are developing especially related uses for algorithmic game theory particularly those involved with internet and e‐based activities. There are ofcourse many other books that introduce game theory and cover its initial progress as a tool for application in these areas and many more mathematical texts that give a rigorous analysis of the theory. There is a place for this book in our libraries and for some time it will provide an extremely useful reference source and guide to applications of algorithmic game theory.