- Introduction. What is a game? Basic elements of noncooperative games: players, strategies, payoffs. Examples. Randomized choices.
- The extensive form representation of a game. Game tree, games of perfect information, the concept of an information set. Randomized choices.
- The normal form representation of a game. Mixedstrategies. Behaviorstrategy. Connection between extensive form representation of a game and normal form representation of a game. Perfect recall.
- Simultaneous-movegames. Dominant and dominated strategies. Strictly and weakly dominated strategies. Iterated deletion of strictly dominated strategies. Funny examples.
- Pure and mixed strategy Nash equilibrium. Glass’ method for normal form representation of a game (2*M). ExistenceofNashequilibrium.
- Zero-sumgames. Minimaxandmaximin. Saddlepoints. Securingpayoffs. Security strategies. Minimaxtheorem.
- Dynamic Games. Noncredible treat. Sequential rationality. Backward induction in finit games of perfect information. Zermelo’s theorem. Subgame perfection. Cournot duopoly. * * Stackleberg leadership model. Funny examples.
- Infinitely repeated games. The One-Shot Deviation Principle. Prisoner’s Dilemma.
- Game of incomplete information. Cournot model with incomplete information. Bayesian Nash Equilibrium
- Ultimatum Bargaining Game (Guth et al. 1982).
- Auction Theory. Introduction.
- Matching theory