Adam Brandenburger and Michael O. Jackson, "Structure of Strategic Interaction"

Adam Brandenburger and Michael O. Jackson’s "Structure of Strategic Interaction" explores how decision-makers (players) in strategic settings consider others’ actions and beliefs. They introduce a framework called the "information structure," which captures what each player knows, believes, and how these influence their choices. This approach helps analyze complex scenarios like negotiations, games, or markets by systematically representing knowledge, uncertainty, and preferences. Essentially, it provides a precise way to understand how what players know and believe shapes their decisions and outcomes in strategic situations.