Game Theory

ECTS : 6

Description du contenu de l'enseignement :

Overview
We will cover the fundamental concepts of strategic games, extensive games with perfect information, Bayesian games and extensive games with imperfect information. We will provide illustrations from the social and behavioral sciences and examples that demonstrate how the theory may be used.
 
Main Topics:
- Building a model of interactions
- Dominant/dominated strategies and iterated elimination of dominated strategies
- Nash equilibrium in discrete games
- Mixed strategies
- Subgame perfect equilibrium
- Imperfect information
- Private information
- Signaling

Course Structure

1. Introduction to strategic reasoning
2. Building a model of strategic interaction
3. Solving a game when rationality is common knowledge
4. Nash equilibria in discrete game with 2 or 3 players
5. Nash equilibria with n players
6. Nash equilibria with n players
7. Midterm Exam
8. Randomized strategies
9. Sequential games with perfect information
10. Sequential games with imperfect information
11. Games with private information
12. Final Exam

Compétence à acquérir :

Course Objectives
We intend to present the main principles of game theory and show how they can be used to understand economic, social and political phenomena. We will introduce the main ideas behind the theory in an accessible manner rather than their mathematical expression.

Learning Outcomes
Game theory is a mode of reasoning that applies to all encounters between humans and deserves a place in a general liberal arts education. We provide a general presentation of the main concepts of game theoretical concepts and many applications of these concepts (with a slight bias towards economic applications).

Mode de contrôle des connaissances :

Mode of Assessment
50% Midterm + 50% final exam
 
The numerical grade distribution will dictate the final grade. The passing grade for a course is 10/20.
 
Class participation: Active class participation – this is what makes classes lively and instructive. Come on time and prepared. Class participation is based on quality of comments, not quantity.
Exam policy: In the exam, students will not be allowed to bring any document (except if allowed by the lecturer). Unexcused absences from exams or failure to submit cases will result in zero grades in the calculation of numerical averages. Exams are collected at the end of examination periods.
 
Academic integrity
Be aware of the rules in Université Paris Dauphine about plagiarism and cheating during exams. All work turned in for this course must be your own work, or that of your own group. Working as part of a group implies that you are an active participant and fully contributed to the output produced by that group.

Bibliographie, lectures recommandées :

Bibliography

• An Introduction to Game Theory, Joseph Harrington
• An Introduction to Game Theory, Martin Osborne