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Game theory with applications to operations management

1CM36

About this course

Decision making by various entities can result in conflict or cooperation between these entities. Game theory deals with the mathematical modelling of these situations of conflict and cooperation and with the analysis of these models. We will provide a solid introduction to both cooperative game theory and noncooperative game theory. Subsequently, we will focus on several applications in the area of operations management.

Topics

Noncooperative game theory

  • Introduction
  • Games in extensive form and games in strategic form
  • (Subgame perfect) Nash equilibrium
  • (Bi-)Matrix games
  • Applications: price and quantity competition, auctions , supply chain contracting (buyback, revenue sharing etc.), ...

Cooperative game theory

  • Introduction
  • Basic properties of (practical) coalitional games
  • Core and balancedness
  • Single-valued solution concepts and its properties: Shapley value, nucleolus, t -value
  • Bargaining
  • Applications: (linear) production, cooperating newsvendors, sequencing, ...

Learning outcomes

Students should have a basic understanding of relevant concepts in both cooperative and noncooperative game theory. Additionally, they should be able to apply these basics to operations management issues.

Required prior knowledge

You must meet one of the following collections of requirements

  • Collection 1
  • Completed Final examination Bsc program
  • Collection 2
  • Completed Pre-Master

Link to more information

If anything remains unclear, please check the FAQ of TU Eindhoven.

Offering(s)

  • Start date

    21 April 2025

    • Ends
      22 June 2025
    • Term *
      Block GS4
    • Location
      Eindhoven
    • Instruction language
      English
    • Register between
      15 Nov, 00:00 - 23 Mar 2025
    Enrolment starts in 123 days
These offerings are valid for students of Utrecht University