Dr Paul Duetting and Prof Olivier Gossner

This course is available on the BSc in Business Mathematics and Statistics, BSc in Management, BSc in Mathematics and Economics, BSc in Mathematics with Economics, BSc in Mathematics, Statistics, and Business and BSc in Statistics with Finance. This course is available as an outside option to students on other programmes where regulations permit. This course is available with permission to General Course students.

The course emphasise a formal treatment of Game Theory through definitions, theorems and proofs. Some familiarity with a rigorous treatment of mathematics is expected. Basic knowledge of matrices as covered in Mathematical Methods (MA100) or Quantitative Methods (MA107) as well as some knowledge of probability is useful.

Concepts and methods of game theory with applications to economics. Game trees with perfect information, Nim. 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 classes in the MT. 2 hours of lectures in the ST.

Written answers to set problems will be expected on a weekly basis.

Lecture notes will be provided. Further 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.