This course is designed as an introductory course to Game Theory, covering its fundamentals, scope, and significance. The main topics of the course include the introduction of the concepts of game, strategy, and equilibrium; non-cooperative games played simultaneously and Nash equilibrium; mixed strategies, sequential games; and games with both sequential and simultaneous moves.
Dixit, Skeath and Reiley, Jr., Games of Strategy, W.W. Norton (2015) Fourth Edition
This course aims to introduce students to the field of Game Theory and to the principles of strategic decision-making under various circumstances. It focuses on analyzing situations where multiple decision-makers are involved, and the benefit of one decision-maker depends not only on their own decisions but also on the decisions made by the others. It focuses on analyzing how rational decision-makers are expected to behave under such circumstances.
1. Introduces the fundamental concepts of Game Theory.
2. Develops the ability to mathematically analyze strategic decision-making processes involving multiple decision-makers, where the benefit of one decision-maker depends not only on their own decisions but also on the decisions of others. Additionally, it enhances strategic thinking and decision-making skills.
3. Provides the opportunity to examine many real-life problems from a game theory perspective, enabling the integration of theory with real-world applications.
4. Helps students understand that many decisions made in daily life are, in fact, economic problems and that the field of economics deals with a much broader range of issues than commonly assumed.
Week 1: Dixit, Skeat, and Reiley: Chapter 1-2: What is a Game? Classifications of Games
Week 2: Dixit, Skeat, and Reiley: Chapter 1-2: What is a Game? Classifications of Games
Week 3: Dixit, Skeat, and Reiley: Chapter 8 Appendix: Choice Under Uncertainty
Week 4: Dixit, Skeat, and Reiley: Chapter 4: Simultaneous Move Games, Pure Strategies, Dominant Strategy, Nash Equilibrium
Week 5: Dixit, Skeat, and Reiley: Chapter 4: Simultaneous Move Games, Pure Strategies, Dominant Strategy, Nash Equilibrium
Week 6: Dixit, Skeat, and Reiley: Chapter 5: Simultaneous Move Games, Continuous Strategies, and Nash Equilibrium
Week 7: Dixit, Skeat, and Reiley: Chapter 7: Simultaneous Move Games, Mixed Strategies, and Nash Equilibrium
Week 8: Dixit, Skeat, and Reiley: Chapter 7: Simultaneous Move Games, Mixed Strategies, and Nash Equilibrium
Week 9: Dixit, Skeat, and Reiley: Chapter 3: Sequential Games, Extensive Form Representation, Game Tree
Week 10: Dixit, Skeat, and Reiley: Chapter 3: Sequential Games, Extensive Form Representation, Game Tree
Week 11: Dixit, Skeat, and Reiley: Chapter 6: Games with Both Sequential and Simultaneous Moves
Week 12: Dixit, Skeat, and Reiley: Chapter 8,16: Applications: Spence's Education Model, Auctions, Bargaining