Game theory helps us understand situations in which individuals interact. The focus of game theory is interdependence, situations in which an entire group of people is affected by the choices made by every individual within that group. It provides a set of analytical tools to understand and consequently predict behavior in multi-person decision settings. This course introduces students to the study of this area. It exposes students to some basic concepts of game theory and explains how these concepts can be used to model a wide variety of game theoretic structures.
Course Objectives & Learning Outcomes:
- To understand Game theory and its methodology.
- To learn application of Game theory in economics especially the strategic behavior of economic agents like firms and consumers.
- At the end of this course, students should be able to recognize and model strategic situations as games and find solutions to them.
- Model strategic situations as games
- Apply tools of game theory to gain insights about real life situations
Microeconomics-I and Statistics-II
Texts and References:
- Osborne, Martin J. 2004. An Introduction to Game Theory, Oxford University Press.
- Dutta, Prajit K. (1999) Strategies and Games: Theory and Practice. The MIT Press: Cambridge, Massachusetts.
- Watson, Joel. 2002. An Introduction to Game Theory
- Rasmusen, E. (1989) Games and Information: An Introduction to Game Theory. Basil
- Blackwell: Oxford.
- Gibbons R. (1992) Game Theory for Applied Economists. Princeton University Press:
- Princeton, New Jersey.