Games in Economic Development

This book looks at economic development issues primarily through the use of game theory.

Bruce Wydick (Author)

9780521687157, Cambridge University Press

Paperback, published 24 December 2007

314 pages, 3 tables
25.6 x 17.4 x 1.7 cm, 0.56 kg

'This a clear, engaging and thoughtful text. But in Games in Economic Development, Wydick also makes an important and controversial argument. The fundamental origins of development and underdevelopment are not to be found in variations in natural or human resources or in exploitative international economic interactions, but rather in the institutions and social norms that have facilitated economic growth in some societies and undermined it in others. Wydick makes this case primarily through the use of theoretical arguments, explaining and using the tools of simple game theory to shed light on wide range of vital questions in development economics. This is an exciting intellectual program, well-summarized in this book.' Chris Udry, Yale University

Games in Economic Development examines the roots of poverty and prosperity through the lens of elementary game theory, illustrating how patterns of human interaction can lead to vicious cycles of poverty as well as virtuous cycles of prosperity. This book shows how both social norms and carefully designed institutions can help shape the 'rules of the game', making better outcomes in a game possible for everyone involved. The book is entertaining to read, it can be accessed with little background in development economics or game theory. Its chapters explore games in natural resource use; education; coping with risk; borrowing and lending; technology adoption; governance and corruption; civil conflict; international trade; and the importance of networks, religion, and identity, illustrating concepts with numerous anecdotes from recent world events. Comes complete with an appendix, explaining the basic ideas in game theory used in the book.

1. Economic development, interdependence, and incentives
2. Games
3. Development traps and coordination games
4. Rural poverty, development, and the environment
5. Risk, solidarity networks, and reciprocity
6. Understanding agrarian institutions
7. Savings, credit, and microfinance
8. Social learning and technology adoption
9. Property rights, governance, and corruption
10. Conflict, violence, and development
11. Social capital
12. The political economy of trade and development.

Subject Areas: Political economy [KCP], Economics [KC], Comparative politics [JPB]