杏吧论坛

Prof Olivier Gossner and Dr Paul Duetting

This course is available on the CEMS Exchange, MBA Exchange, MSc in Applicable Mathematics, MSc in Financial Mathematics, MSc in Management Science (Decision Sciences) and MSc in Operations Research & Analytics. This course is available as an outside option to students on other programmes where regulations permit.

It is not available to students who have taken Game Theory (MA300) or Game Theory I (MA301).

Students must know basics of linear algebra (matrix multiplication, geometric interpretation of vectors) and probability theory (expected value, conditional probability, independence of random events).

The course studies the theory of games, its approach is mathematical, with some applications to economics. Topics studied include: Game trees with perfect information, NIM, combinatorial games. Backward induction. Extensive and strategic (normal) form of a game. Nash equilibrium. Commitment. Zero sum games, mixed strategies. Maxmin strategies. Nash equilibria in mixed strategies. Finding mixed-strategy equilibria for two-person games. Extensive games with information sets, behaviour strategies, perfect recall. If time permits: The Nash bargaining solution. Multistage bargaining.

20 hours of lectures and 10 hours of seminars in the MT. 2 hours of lectures in the ST.

Weekly exercises are set and marked.

Lecture notes will be provided. Supplementary reading: K Binmore, Playing for Real: Game Theory CUP, 2007; E Mendelson, Introducing Game Theory and Its Applications, CRC 2004

Exam (100%, duration: 2 hours) in the summer exam period.