Course 005 : Introduction to Game Theory

Announcements
Part-A >>
Part-B

Part-A

 

Notes:

Lecture Note: Mixed strategy and existence of Nash equilibrium

Lecture slide: ODP

Lecture Note: Subgame Perfect Nash equilibrium and One Deviation Property

 

Books:

1. Osborne, An introduction to game theory, Indian edition

2. Muthoo, Bargaining theory with applications

Syllabus:

  1. Strategic form games [Osborne: 2,3.1*,3.2*,3.3*,4.1-4.10]: Strategy, Payoff; Dominant strategy; Nash equilibrium; Mixed strategy Nash equilibrium; Iterated elimination
  2. Extensive form games [Osborne: 5,6.1*,6.2*,7]: Strategy, Payoff, Nash Equilibrium, Subgame perfect Nash equilibrium, One deviation property and backward induction, Games with probabilistic outcome
  3. Bargaining [Muthoo: 3.2,3.3*]: Alternating offers bargaining: finite and infinite horizon [Muthoo: 3]; Axiomatic bargaining (if time permits)

 

Note

Sections marked with (*) and some sections in Osborne under the heading ‘Illustration/Example’ may not be covered in lectures/tutorials. Students are expected to read these sections on their own.

 

Interesting (non-technical) readings on history and use of Game theory:

Rubinstein, Economic fables

Ken Binmore, Playing for real

Dark history of game theory? (BBC Documentary: Pandora's Box, A Fable From The Age Of Science, watch Part 2)

[Experiment] How good are game theory predictions?Introduction chapter of 'Behavioral Game theory: Experiments in strategic interaction' (Camerer)

 

Problem set, Assessment:

Problem set 1, Problem set 2, Problem set 3

Model Answers (Part-A): Mid term 2015  (Mid term 2015 QP), Make-up mid term 2015 (Make-up mid term 2015 QP),

Mid term 2016 solution (Mid term 2016 QP), Mid term 2017 (Mid term 2017 QP)

Model Answers (Part-A) Final Exam 2015 (Final exam 2015 QP), Final exam 2014 (Final exam 2014 QP),

Internal Assessment 2017:

(M.A. students) First mid term: 27th February 2017, Syllabus: Topic 1 and 2