Game Theory and Decision Making
- The goal of the course is to teach students the strategic way of thinking about behavior of rational agents, their strategies and decisions in an economy, business and life. Objectives of this course are: to introduce methods of the Game theory as tools in application and improving analytical and decision-making skills.
- Acquirement of core competencies in the sphere of Game Theory.
- Acquirement of necessary theoretical base and practical skills in the sphere of Game Theory.
- Students' preparation for managerial, analytical, research and entrepreneurial roles in companies and organizations.
- Basic concepts of game theory. Classification and description of gamesDefinition of a gameTypes of gamesSolution of a game.
- Static noncooperative gamesFinite games in normal form. Pareto
- Dynamic games with perfect and imperfect informationFinite game in extensive form. Subgame. Subgame perfect Nash equilibrium. Information sets. Games with imperfect information.
- Repeated gamesGames repeated finitely. Games repeated infinitely. Discounting. The Folk Theorem
- Cooperative gamesCooperative game. Coalition. Coalition value function Symmetric players. Dummy players. Summation and splitting of games. Shapely value. CoreMajority games. Veto players. Null players. Shapely-Shubik index
- Bankruptcy problem, AuctionsAuctions. Mechanism design. Bankruptcy problem.
- Interim assessment (2 module)0.25 * average score of weekly quizzes + 0.25 * test work #1 + 0.25 * test work #2 + 0.25 * test work #3
- Games of strategy, Dixit, A.K., Skeath, S., 2015
- Insights into game theory : an alternative mathematical experience, Gura, E.- Y., Maschler, M., 2008
- The art of strategy : a game theorist's guide to success in business & life, Dixit, A. K., Nalebuff, B. J., 2008
- Playing for real : a text on game theory, Binmore, K., 2007