Course Description: | This course introduces Game Theory systematically and analyzes economic, political and social problems with consideration of Game Theory. Game Theory is the study of multi-person decision problems. The simple game thought goes back to the ancient times, but Game Theory is only 70 years old to form the system of the theory and method and become an independent discipline. Since 1994, there have been more than a dozen Game Theory experts (mostly mathematicians) who won the Nobel Price in economics. As a branch of math and a method of modeling, Game Theory has not only widely used in economics, political science and management, but also used in biology, computer science and other areas of the natural science and engineering. Course topics include: Dominant Strategy Equilibrium, Iterated Dominance Equilibrium, Nash Equilibrium, Comparison of multiple Nash Equilibrium, Mixed Strategy, MinMax and MaxMin, Matrix Games, Correlated Strategy and Correlated Equilibrium, Extensions and applications, Extended expression of Game Theory , The equilibrium of Dynamic Game, -Subgame-perfect Equilibrium, Trembling Hand Equilibrium -Commitment -Repeated Game, Expression of Static Game of Incomplete Information, Static Game of Incomplete Information Equilibrium, Mechanism Design and the Revelation Principle, Perfect Bayesian Equilibrium, Forward Induction, refine the Perfect Bayesian Equilibrium, Signaling Game: example of labor market, Repeated Games of Incomplete Information: “Irrationality” and Reputation, Nash Bargaining Solution, and The Shapley Value.
Text: Gibbons, R. A PRIMER IN GAME THEORY.
Assessment: homework (20%), final exam (80%). |