E1 254 : Game Theory
Tuesdays and Thursdays : 11:30 AM - 1:00 PM
Introduction: Rationality, intelligence, common knowledge, von Neumann - Morgenstern utilities.
Noncooperative Game Theory: Strategic form games, dominant strategy equilibria, pure strategy nash equilibrium, mixed strategy Nash equilibrium, existence of Nash equilibrium, computation of Nash equilibrium, matrix games, minimax theorem, extensive form games, subgame perfect equilibrium, games with incomplete information, Bayesian games.
Mechanism Design: Social choice functions and properties, incentive compatibility, revelation theorem, Gibbard-Satterthwaite Theorem, Arrow's impossibility theorem, Vickrey-Clarke-Groves mechanisms, dAGVA mechanisms, Revenue equivalence theorem, optimal auctions.
Cooperative Game Theory: Correlated equilibrium, two person bargaining problem, coalitional games, core, Shapley value, other solution concepts in cooperative game theory.
- 15/100 : Quizzes on homeworks (fortnightly)
- 20/100 : Mid-term - 5:30 AM - 7:00 PM, Thursday, 26 September 2013
- 15/100 : Independent reading and presentation - 9:30 AM - 4:30 PM, Saturday, 16 November 2013
- 50/100 : Final - 9:00 AM - 12:00 noon, Thursday, 12 December 2013
- Roger B. Myerson, Game Theory: Analysis of Conflict, Harvard University Press, September 1997.
- Martin J. Osborne, An Introduction to Game Theory, Oxford University Press, 2003.
- Y. Narahari, Dinesh Garg, Ramasuri Narayanam, Hastagiri Prakash, Game Theoretic Problems in Network Economics and Mechanism Design Solutions, Springer, 2009.
- D. Fudenberg and J. Tirole, Game Theory, Indian Edition by Ane Books, 2005.