## Introduction to Game Theory

### Professor Simon Grant

 Time and Place: Tu & Th 8:00am - 9:15am TBA Office: Baker Hall 252 Communication: Tel: 713-348-3332 email: sgrant@rice.edu Office Hours: Tu & Th 10:00am - 11:00am Teaching Assistants: Rajnish Kumar email:Rajnish.Kumar@rice.edu Burcu Cigerli email: Burcu.Cigerli@rice.edu Midterm: In Class - Thursday, Feb 26

### Course Aims and Methods:

Game theory is a way of thinking about strategic situations. One aim of the course is to teach you some strategic considerations to take into account when making your own choices. A second aim is to predict how other people or organizations behave when they are in strategic settings. We will see that these aims are closely related. We will learn new concepts, methods and terminology. A third aim is to apply these tools to settings from economics and other disciplines. The course will emphasize examples. We will also play several games in class.

### Course Requirements:

(a) Reading the assigned material - textbook, articles - and be responsible for the material discussed in class.
(b) There will be fortnightly problem sets handed in during the semester to do as homework. Doing the assignments is important for your understanding, and therefore shortcuts are not recommended. Sometimes, problems will be assigned on material not yet covered in class; it's all right if you make mistakes, you will learn a lot from them. Problems should be solved and submitted individually.

The final grade will be based on the following:
Midterm exam - 25%.
Final exam - 50%.
Problem Sets - 25% (all assignments are equally weighted).

If the minimum percentage score earned on the mid-term exam or on the problem sets is lower than the percentage score earned on the final, then the mid-term exam or the problem sets will not be used in the calculation of the final grade. Instead, the weight of the final exam will be increased to 75%. That is, the final exam's weight will be increased from 50% to 75% only if that improves a student's overall percentage score.

The following table will be used to convert the final numerical score on the course to letter grades.

 % Score > 90 A+ % Score > 85 and <= 90 A % Score > 80 and <= 85 A- % Score > 75 and <= 80 B+ % Score > 70 and <= 75 B % Score > 66 and <= 70 B- % Score > 63 and <= 66 C+ % Score > 60 and <= 63 C % Score > 55 and <= 60 C- % Score >= 50 and <= 55 D % Score < 50 F

The expected grade distribution -- according to departmental guidelines.

### Special Needs:

Any student with a documented disability needing academic  adjustments or accommodations is requested to speak with me during the first two weeks of class. All discussions will remain confidential. Students with disabilities will need to also contact Disability Support Services in the Ley Student Center.

### Required Textbook:

J. Watson: Strategy: An Introduction to Game Theory, 2nd Edition, Norton 2008.

### Background:

A. Dixit & B. Nalebuff: Thinking Strategically, Norton 1991.

Course Outline

### Problem Sets:

PS #1 | Answer Key #1
Final Exam Fall 2006 ; Answer Key

Lecture Notes on Games with Asymmetric Information
Pictures on Price Discrimination
Fair Games for the Final Exam