Learn strategic thinking and decision-making through this comprehensive game theory course that explores how rational actors interact in competitive and cooperative situations. Master fundamental concepts including dominance, backward induction, Nash equilibrium, evolutionary stability, commitment, credibility, asymmetric information, adverse selection, and signaling through both theoretical frameworks and practical applications. Engage with interactive classroom games while analyzing real-world examples from economics, politics, entertainment, and daily life. Explore mixed strategies through sports examples like tennis and baseball, understand evolutionary stability in social conventions and cooperation, and examine sequential games involving moral hazard and strategic commitments. Delve into imperfect information scenarios, subgame perfect equilibrium in matchmaking and investment decisions, repeated games dynamics, and asymmetric information problems including auctions and signaling mechanisms. Apply game-theoretic principles to diverse scenarios ranging from business partnerships and voting behavior to dating strategies and international conflicts, developing analytical skills essential for understanding strategic interactions in economics, politics, and social situations.

Syllabus

1. Introduction: five first lessons
2. Putting yourselves into other people's shoes
3. Iterative deletion and the median-voter theorem
4. Best responses in soccer and business partnerships
5. Nash equilibrium: bad fashion and bank runs
6. Nash equilibrium: dating and Cournot
7. Nash equilibrium: shopping, standing and voting on a line
8. Nash equilibrium: location, segregation and randomization
9. Mixed strategies in theory and tennis
10. Mixed strategies in baseball, dating and paying your taxes
11. Evolutionary stability: cooperation, mutation, and equilibrium
12. Evolutionary stability: social convention, aggression, and cycles
13. Sequential games: moral hazard, incentives, and hungry lions
14. Backward induction: commitment, spies, and first-mover advantages
15. Backward induction: chess, strategies, and credible threats
16. Backward induction: reputation and duels
17. Backward induction: ultimatums and bargaining
18. Imperfect information: information sets and sub-game perfection
19. Subgame perfect equilibrium: matchmaking and strategic investments
20. Subgame perfect equilibrium: wars of attrition
21. Repeated games: cooperation vs. the end game
22. Repeated games: cheating, punishment, and outsourcing
23. Asymmetric information: silence, signaling and suffering education
24. Asymmetric information: auctions and the winner's curse