prerequisites for understanding game theory
As @JordanMahar mentions, Fudenberg and Tirole is the standard graduate-level text. But I would start with Game Theory for Applied Economists by Gibbons. It is very readable.
Prerequisites for Gibbons are minimal. A little algebra and probability will do just fine.
In economics, the classic source for game theory is:
Fudenberg, D. and Tirole, J. (1991). Game Theory
At least with Game Theory applied to economics, you can begin with a minimal knowledge of mathematics (applied calculus and some set theory will usually suffice).
- Secondary-school math. And since game theory is essentially math, along the way you'll learn more math.
- Ken Binmore's Playing for Real: A Text on Game Theory is suitable for undergraduates and doesn't get heavily mathematical at all.
- What is game theory about?
- How do I apply game theory?
- Why is game theory right?
There's even a marker in the margin in places where you're allowed to skip some of the math and move on to the next bit.
It isn't easy to write in a light-hearted style when presenting mathematical material, but I did my best.
I think he did an excellent job.