The course is intended for students and teachers of institutions which offer undergraduate engineering programmes
The aim of the course is to provide an introduction to the study of game theory which has found wide applications in economics, political science, sociology, engineering apart from disciplines like mathematics and biology
The course would introduce to the fundamental tools of game theory, a few equilibrium concepts, apart from numerous exercises and applications
Knowledge of game theory would help students to understand and analyse real life situations such as market behaviour or voting in elections, apart from equipping them with analytical concepts which might be useful should they decide to pursue social sciences, engineering, sciences or managerial higher studies
This is an interdisciplinary course, hence not only social sciences but science and engineering departments of different universities can benefit from it
The six modules of the course are as follows,
Introduction to Game Theory
Strategic Games and Nash Equilibrium
Illustrations of Nash Equilibrium
Mixed Strategy Nash Equilibrium
Extensive Games and Nash Equilibrium
Illustrations of Extensive Games and Nash Equilibrium
Sl. and module No.
Module/ Lecture Topics
No. of (Total) Hours
1.
Introduction to Game Theory
What is game theory?
Theory of rational choice
Interacting decision makers
2
2.
Strategic Games and Nash Equilibrium
Strategic games: examples
Nash equilibrium: concept and examples
Best response functions
Dominated Actions
Symmetric games and symmetric equilibria
10
3.
Illustrations of Nash Equilibrium
Cournot’s model of duopoly market
Bertrand’s model of duopoly market
Electoral Competition
War of Attrition
Auctions
Accident Laws
14
4.
Mixed Strategy Nash Equilibrium
Introduction
Strategic games with randomisation
Mixed strategy Nash equilibrium: concept and examples
Dominated Actions
Formation of Players’ beliefs
6
5.
Extensive Games and Nash Equilibrium
Introduction to extensive games
Strategies and outcomes
Nash equilibrium
Subgame perfect Nash equilibrium
Backward induction
6
6.
Illustrations of Extensive Games and Nash Equilibrium
Stackelberg model of duopoly markets
Ultimatum game
2
10+2 level of Mathematics
Osborne, M.J. An Introduction to Game Theory, Oxford University Press, 2004
Mas-Colell, A., M.D. Whinston and J.R. Green Microeconomic Theory, Oxford University Press, 1995
Gibbons, R. A Primer in Game Theory, Pearson Education, 1992
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