Applied Game Theory

A game in this class, is a formal model to represent and analyze a situation in which individuals or groups interact strategically. In said situations, an individual’s behavior affects other individuals’ behavior which, in turn, affects the individuals’ well-being. We can think of most everyday interactions as games, and game theory offers us a systematic way to think about these interactions. Scholars in various disciplines, including economics, business, psychology, political science, and linguistics have applied game theory to study behavior in different contexts. This course has two parts. The first part will introduce you to the tools needed to analyze strategic interaction formally.

You will learn a methodology to understand simultaneous, sequential, and repeated interaction with complete and incomplete information. Examples and applications will illustrate solution concepts developed for cooperative and non-cooperative games. The second part of the course will discuss applications of game theory to the study of different economic problems. These applications include bargaining, contract and policy design, matching markets, voting, political competition and power, and justice.