Syllabus

Unit – 1
Foundations: Calculus and Optimization Probability and Expectation, Utility and Expected Utility Introduction to Game Theory
Unit – 2
Strategic form Games and Dominant Strategies, Dominance Solvability, Nash Equilibrium, Applications: Cournot Duopoly, Voting and Elections, The Commons Problem Mixed Strategies and Zero-sum Games
Unit – 3
Extensive Form Games and Backward Inductions: Subgame Perfect Equilibrium, Finitely and Infinitely Repeated Games Applications – R&D, Stock Market, OPEC, and Trade Agreements
Unit – 4
Asymmetric Information Games: Moral Hazzard and Incentives Theory, Signalling Games and Lemon Problem
Basics of Dynamic Games and Cooperative Games

To assimilate the interconnections between Game Theory and Economics.

To understand and assess the fundamental procedures of rules of the game, forms of the game.

To analyze the applications of game theory principles in Economics and Business.

To comprehend and evaluate the different types of game theory: pure and mixed, cooperative and non-cooperative, static and dynamic.

On successful completion of the course, students will be able to:
1. Identify and understand the rationale of game theory as a mathematical model
2. Apply the techniques of game theory in Economics, Business, and Finance
3. Assess the importance of different game theoretical applications in understanding fundamentals of Micro and Macroeconomics laws and theories.

Dutta Prajit K., and Vergote, W. (2022), Strategies and Games: Theory and Practice, MIT Press

Watson, J. (2013), Strategies: An Introduction to Game Theory, W. W. Norton

Osborne M. J. (2004), An Introduction to Game Theory, Oxford University Press

Romp G. (1997),, Game Theory: Introduction and Applications, Oxford University Press