Game theory focuses on how groups of people interact, or play the game when making rational decisions. This includes all kinds of games and decisions, from how a group of friends play their hands in a poker game, to how drivers on a busy city street make their driving decisions, to the negotiation of a contract between a firm and labour union. Binmore's examination of the application of game theory is then applied to economics. In his highly anticipated second edition, Binmore brings his unique style and story-telling abilities to explore the many facets of the game theory field. Highlights of the new third edition include: - Greater emphasis on how game theory clarifies the basic economic assumption, covering both non-co-operative and co-operative bargaining theory - Brand new material on auctions and evolutionary biology