Mathematics of Games
|Responsible||Dr. Lucia Penso|
Olga Graf, Carina Ziegler
|Type||MATH, 9LP, 4 Hours Course, 2 Hour Exercises (4+2)|
|Place and Time||Course:|
Game theory is the study of multiperson decision problems. Such problems arise frequently in competitive scenarios where knowledge is distributed, such as in economics. For instance, oligopolies incorporate multiperson problems: each one must consider what the others will do in order to achieve success in a competitive environment. The same happens in auctions, where several people might be interested in the very same item. How to act in the best of ways when competition is present among participants with conflictive interests? Does cooperation help in such a scenario? In which cases?
In this class, we will cover a handful of models in game theory, including models of static and dynamic information, as well as of complete and incomplete information. We will also study a variety of stable optimal solutions, including: nash equilibrium, subgame-perfect equilibrium, bayesian equilibrium, perfect bayesian equilibrium.
Several examples are given, such as in the context of oligopolies, auctions, bargaining, tariff and wage competition, cooperative games, finite and infinite repeated games, zero sum games, signaling games, mechanism design, reputation.
|Exercises||The exercise sheets are published at our Moodle-page|
The first lecture will be on April 18, 2017.