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Massachusetts Institute of Technology

Economic Applications of Game Theory

Massachusetts Institute of Technology via MIT OpenCourseWare

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Overview

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Game theory is the mathematical analysis of strategic interaction. It is used to analyze situations in which one person’s best decision depends on the decisions taken by others. Examples include traditional games such as chess and poker, but also collusion by cartels, political competition, voting, bargaining, auctions, and evolution. This course will introduce the fundamental tools of game theory and use these tools to analyze applications.

Syllabus

  • Lecture 1: Introduction to Individual Decision-Making
  • Lecture 2: Representation of Games
  • Lecture 3: Dominance
  • Lecture 4: Rationalizability
  • Lecture 5: Nash Equilibrium
  • Lecture 6: Imperfect Competition
  • Lecture 7: Zero-Sum Games
  • Lecture 8: Backward Induction
  • Lecture 9: Negotiation
  • Lecture 10: Subgame-Perfect Nash Equilibrium
  • Lecture 11: One-Shot Deviation Principle and Bargaining
  • Lecture 12: Finitely Repeated Games
  • Lecture 13: Infinitely Repeated Games
  • Lecture 14: Folk Theorem
  • Lecture 15: Implicit Cartels
  • Lecture 16: Bayesian Games
  • Lecture 17: Bayesian Nash Equilibrium: Applications
  • Lecture 18: Auctions
  • Lecture 19: Revenue Equivalence
  • Lecture 20: Ad Auctions
  • Lecture 21: Perfect Bayesian Equilibrium
  • Lecture 22: Signaling
  • Lecture 23: Bargaining with Incomplete Information
  • Lecture 24: Cheap Talk
  • Lecture 25: Common Knowledge

Taught by

Prof. Ian Ball

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