The book introduces basic concepts from game theory and graph theory as well as some fundamental algorithms for exploring graphs. These tools are then applied to analyze strategic interactions over social networks, to explore different types of markets and mechanisms for networks, and to study the role of beliefs and higher-level beliefs (beliefs about beliefs). Specific topics discussed include coordination and contagion on social networks, traffic networks, matchings and matching markets, exchange networks, auctions, voting, web search, models of belief and knowledge, and how beliefs affect auctions and markets. An appendix offers a “Primer on Probability.” Mathematically rigorous, the text assumes a level of mathematical maturity (comfort with definitions and proofs) in the reader.

I Games and Graphs

1 Game Theory

2 Graphs

3 Analyzing Best-Response Dynamics

4 Coordination in School Networks

5 Contagion in Social Networks

II Markets on Networks

6 More on Graphs: Flows and Matchings

7 Taffic Network Games

8 Matching Markets

9 Exchange Networks

III Mechanisms for Networks

10 Mechanism Design and Auctions

11 Voting: Basic-Notions

12 Voting: Barriers and Ways around Them

13 One-sided Matchings:House Allocation Problems

14 Two-sided Matchings:Stable Marriages

15 Web Search

IV The Role of Beliefs

16 The Wisdom and Foolishness of Crowds

17 Knowledge and Common Knowledge

18 Common Knowledge of Rationality

19 Markets with Networks Effects

V Appendix

A A Primer on Probability

Bibliography

Index