Course description
The course in game theory introduces modeling principles for situations when agents influence each other through their actions. During the course the students will understand why leading mobile operators are unlikely to get monopolistic profits, why OPEC+ is not able to influence oil price for a lengthy period of time, and how to make good decisions in a war situation or in a family circle. The students will learn to make their choices accounting for the actions of people around them, and will understand why often the best choice is a random one, and why the majority choice is not necessarily the best one. The students will also learn why it is so difficult for people to come to an agreement, and how to create correctly working mechanisms for allocation of scarce resources in different spheres — from allocating government contracts to donor organs.
Literature
- Dixit A., Skeath S. Games of strategy, 2nd ed. New York; London: W. W. Norton & Company, 2004.
- Jehle G., Reny P. Advanced Microeconomic Theory, 3rd ed. Pearson, 2011.
- Fudenberg D., Tirole J. Game Theory. Cambridge, Massachusetts: The MIT Press, 1991.
- Maschler M., Zamir S., Solan E. Game Theory. Cambridge University Press, 2013.