Grading is based on Homeworks (approximately one per week), a Mid-term exam on March 14th, and the final exam, with respective weights 0.3, 0.25, 0.45.
Your TA is Sinan Ertemel, who will arrange for a weekly session reviewing the problems in the homeworks. I am here most days to talk with you but you need to make an appointment by email.
No textbook is required, as the notes will be self contained. If you wish to buy a text, my favorites are A course in game Theory, by Osborne and Runbinstein, MIT, 1994, and An Introduction to Game Theory, by Osborne, OUP 2004.
Syllabus
1. Two-person zero-sum games (2.5 weeks)
strategic form, extensive form, mixed strategies, Von Neumann’s theorem
2. Nash equilibrium (2.5 weeks)
decentralization and dynamic stability; coordination scenarios; potential games, dominat strategy equilibrium and dominance-solvable games
3. Existence results and mixed strategies (2.5 weeks)
Nash’s theorem; Tarski’s theorem; Von Neumann and Morgenstern utility; mixed strategy and correlated equilibrium
4. Extensive form games (2 weeks)
subgame perfect equilibrium, repeated games
5. Core stability (2.5 weeks )
strong equilibrium, cooperative games with and without transferable utility, application to
exchange, matching and production
6. The Shapley value (2 weeks)
fair division in cooperative games; axioms for the value; Shapley value and the core
core stability
