Game Theory

(Standard) game theory deals with mathematical models of conflict and cooperation in the real world between at least two rational and intelligent decision makers.
The course provides a first introduction to game theory. There are two parts: non-cooperative game theory and cooperative game theory. Various types of games are dealt with: parlor games (chess, hex, ...), coordination games (chicken, ..), prisoners' dilemma, oligopolies, ... Only basic mathematics is used.

• Show basic understanding of the usefulness of game theory

• Understand the structure, basics and concepts of games in strategic form, games in extensive form and games in characteristic function form

• Apply these concepts to concrete games and to various real world problems

• Written test with open and closed questions (70%)
• Assignment essay (30%) The assignment, which may be conducted also with 2 or 3 people, concerns a short essay in which one describes a problem and sets up and solves a model.

Basic mathematics.

• K. Binmore, Game Theory, a Very Short Introduction, 2007, ISBN 978-0-19-921846-2.