F06.05: Game Theory

This course consists of two parts. The first part (six meetings) is a basic introduction to game theory, based on the reader Game Theory. Roughly, the first four weeks of this part are devoted to noncooperative game theory and the last two weeks to cooperative game theory (pdf-file will be available one of the next few weeks).

The second part (also six meetings) is devoted to more specialized topics: further refinements of Nash equilibrium, NTU-games, repeated games, evolutionary games and, depending on the interests of the students, specific topics like for instance auctions, congestion games, or learning theories.

The general aim of the course is to make students acquainted with basic game-theoretic concepts.

Credits

6 ECTS

Time Schedule

See NAKE course program
There will be 12 weeks of 2 hour lectures in total.

Prerequisites

A basic knowledge of mathematics/calculus is sufficient, but some experience with mathematical reasoning is indispensable. The course starts from scratch.

Examination

To be decided in consultation with the students.

Course Outline

Topic 1. Introduction, Examples, Cooperative vs. non-cooperative models

Topic 2. Normal form games, Best reply concept, Nash equilibrium

Topic 3. Extensive form games, Relation with normal form, (Subgame perfect) Nash equilibrium

Topic 4. Signalling games, Sequential (or perfect Bayesian) equilibrium

Topic 5. Cooperative games with side-payments: Balancedeness and core

Topic 6. Cooperative games with side-payments: Shapley value, nucleolus

Topic 7. Refinements in normal form games: perfect and proper equilibrium

Topic 8. Static games of incomplete information: Bayesian Nash equilibrium

Topic 9. Extensive form games of incomplete information: sequential equilibrium, belief refinements

Topic 10. Non-transferable utility games: core and NTU-value

Topic 11. Repeated games

Topic 12. Evolutionary games

Literature

For the first part there is a textbook available. For the second part a reader will be composed.

Note: For the first meeting (September 9) students may prepare by starting to read the textbook, in particular Chapters 1 and 2.

Additional topics

Auction design: revenue equivalence, Green-Laffont, VCG mechanism.
Congestion games: Monderer-Shapley potential games, Tardos-Roughgarden.
Topics from learning theories (H. P. Young and others).

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