MA402      Half Unit
Game Theory I

This information is for the 2016/17 session.

Teacher responsible

 

Dr Paul Duetting

Availability

This course is available on the CEMS Exchange, IMEX Exchange, MSc in Applicable Mathematics, MSc in Financial Mathematics, MSc in Management Science (Decision Sciences) and MiM Exchange. 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).

Pre-requisites

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

Course content

The course studies the theory of games and its applications in economics: 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.

Teaching

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

Formative coursework

Weekly exercises are set and marked.

Indicative reading

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

Assessment

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

Key facts

Department: Mathematics

Total students 2015/16: 32

Average class size 2015/16: 18

Controlled access 2015/16: No

Value: Half Unit

Guidelines for interpreting course guide information

Personal development skills

  • Self-management
  • Problem solving
  • Application of information skills
  • Communication
  • Application of numeracy skills
  • Specialist skills