A comprehensive overview of networks and economic design, presenting models and results drawn from economics, operations research, and computer science; with examples and exercises. This book explores networks and economic design, focusing on the role played by allocation rules (revenue and cost-sharing schemes) in creating and sustaining efficient network solutions. It takes a normative approach, seeking economically efficient network solutions sustained by distributional fairness, and considers how different ways of allocating liability affect incentives for network usage and development. The text presents an up-to-date overview of models and results currently scattered over several strands of literature, drawing on economics, operations research, and computer science. The book's analysis of allocation problems includes such classic models from combinatorial optimization as the minimum cost spanning tree and the traveling salesman problem. It examines the planner's ability to design mechanisms that will implement efficient network structures, both in large decentralized networks and when there is user-agent information asymmetry. Offering systematic theoretical analyses of various compelling allocation rules in cases of fixed network structures as well as discussions of network design problems, the book covers such topics as tree-structured distribution systems, routing games, organizational hierarchies, the “price of anarchy,” mechanism design, and efficient implementation. Appropriate as a reference for practitioners in network regulation and the network industry or as a text for graduate students, the book offers numerous illustrative examples and end-of-chapter exercises that highlight the concepts and methods presented.

A game-theoretical analysis of interactions between a human being and an omnipotent and omniscient godlike being highlights the inherent unknowability of the latter's superiority. In Divine Games , Steven Brams analyzes games that a human being might play with an omnipotent and omniscient godlike being. Drawing on game theory and his own theory of moves, Brams combines the analysis of thorny theological questions, suggested by Pascal's wager (which considers the rewards and penalties associated with belief or nonbelief in God) and Newcomb's problem (in which a godlike being has near omniscience) with the analysis of several stories from the Hebrew Bible. Almost all of these stories involve conflict between God or a surrogate and a human player; their representation as games raises fundamental questions about God's superiority. In some games God appears vulnerable (after Adam and Eve eat the forbidden fruit in defiance of His command), in other games his actions seem morally dubious (when He subjects Abraham and Job to extreme tests of their faith), and in still other games He has a propensity to hold grudges (in preventing Moses from entering the Promised Land and in undermining the kingship of Saul). If the behavior of a superior being is indistinguishable from that of an ordinary human being, his existence would appear undecidable, or inherently unknowable. Consequently, Brams argues that keeping an open mind about the existence of a superior being is an appropriate theological stance.