Entry requirements

Mathematics, 30 ECTS credits, or 60 ECTS credits in Philosophy, Economics or Political Science.

Aims

The aim of this course is to give an introduction to the mathematical theory of game theory, which has two main branches - noncooperative games and cooperative games, and to present some of its applications in economy and social sciences.

Content

Two-person zero-sum games: Strategic form, pure and mixed strategies, minimax strategies, matrix games, dominating strategies, equilibria, extensive form, game trees, games with complete and games with incomplete information.

Two-person general sum games and many-person games:

Bimatrix games, strategic and extensive form, safety levels, noncooperative games, strategic equilibria (Nash equilibria), iterated elimation of dominated strategies.

Models of duopoly: the Cournot model, the Bertrand model and the Stackelberg model.

Cooperative games with and without transferable utility.

Games in coalitional form: coalitions, imputations and the core, the Shapley value.

Instruction

Lectures and problem solving sessions.

Assessment

Written examination at the end of the course.

Mandatory exercises may also be part of the examination.