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Game Theory Ming-hung Weng Course Syllabus Office Hours : in Room 27603 (6th floor of Yun-Ping Building) Tuesdays 10-12 PM, other time by appointment. Website: http://myweb.ncku.edu.tw/~mhweng/game.htm Required Text

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course syllabus
Course Syllabus
  • Office Hours: in Room 27603 (6th floor of Yun-Ping Building)
  • Tuesdays 10-12 PM, other time by appointment.
  • Website: http://myweb.ncku.edu.tw/~mhweng/game.htm
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Required Text

Games of Strategy, 2nd edition, Avinash Dixit & Susan Skeath. (2003) Norton (華泰代理)

  • Suggested Text

A Primer in Game Theory, Robert Gibbons, Harvester Wheatsheaf.

Game Theory, Drew Fudenberg and Jean Tirole, The MIT Press.

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Course Objectives

Game theory, within the last several decades, has grown into one of the most important and popular tools used in understanding the interactions between individuals, institutes, or countries, especially in the fields of economics, business, politics and biology. Though it is based on a strong mathematic foundation, this course aims at providing the introductory concepts and techniques to the undergraduate students.

The first half of this course will be devoted to explore the structure of the game by introducing different forms and styles of them and their solution concepts. The class will turn its focus on several popular applications of game theory during the second half after students getting more familiar with the solution concepts.

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Course Evaluation
  • Homework 20%
  • Term Paper 10%
  • Presentation 5%
  • Class Participation 5%
  • Midterm 30%
  • Final 30%
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First of all, since this is an English-lectured class, all assignments and tests should be completed in English.
  • Homework: There’ll be homework assigned for each chapter covered. Homework needs not be handed in. However, there’ll be a short quiz when the assignment is due with questions coming exactly from the homework. The lowest grades will be excluded when evaluating the average, which will weight 20% of the overall grades.
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Term Paper: By Dec 24th, students will form groups (2-3 students) to submit a short (3-10 pages, 11-pt-font, single-line spaced) paper where they apply their concepts and techniques of game theory to explain phenomenon(s) they observe from their daily lives, the news or the history.
  • Presentation: After receiving some comments from the instructor, each group will have an in-class presentation (10-15 minutes, in English) with PowerPoint to demonstrate and justify the observation in their paper.
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Class Participation: This part will basically evaluate students’ attendances and performance in the class.
  • Midterms: There’ll be one midterm and one final. Both are mandatory.
about game theory
About Game Theory
  • John Forbes Nash Jr., A Beautiful Mind
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John von Neumann and Oskar Morgenstern. 1944 book Theory of Games and Economic Behavior
  • Antoine Augustin Cournot's

Researches into the Mathematical Principles of the Theory of Wealth) in 1838

  • Eric Maskin
what is a game
What is a game?
  • Models analyzing interactions among parties or individuals.
  • How do they interact?

Simultaneous moves (Static Games)

Sequential moves (Dynamic Games)

  • How long do they interact?

One-shot Games

Repeated Games (finite/infinite periods)

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How are their interests related?

Zero (Constant) sum game

Nonzero (Nonconstant) sum game

  • How well do they observe each other’s moves?

Perfect information game

Imperfect information game

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How well do they know the game played?

Complete information

Incomplete (asymmetric) information

terminologies
Terminologies
  • Strategies

A complete plan of actions

Pure vs. mixed strategies

  • Payoffs

Utility

  • Rationality

Utility maximizer

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Common Knowledge of Rules

Knowing each other knowing how the game is played and etc.

  • Equilibrium

Nash Equilibrium and etc.

  • Observation and Experiment

Traveler’s dilemma