Game Theory

Full course description

We introduce the field of Game Theory. Game Theory is the mathematical study of problems, called games, that involve two or more decision makers, called players, who each have their own individual preferences over the possible outcomes. In a game, each player always aims to maximize his individual payoff and chooses his actions accordingly. These actions may be probabilistic or deterministic, depending on the situation. Meanwhile he reasons logically about actions that might be taken by the other players. A basic difference exists between strategic and non-strategic models. Both types of models and their solution concepts will be discussed. Issues like value, fairness, manipulations, threats, optimality and rationality will be addressed.

This is an optional course: Third year students choose three electives per period out of the optional courses during period 1 and 2.