STRATEGIC GAME THEORY

Tema 1
Motivational examples.

Tema 2
Simultaneous 2-person zero-sum games, including the concept of mixed strategy and the Minmax theorem. Also, a brief dicussion of expected utility theory (the representation theorem, Allais paradox, …).

Tema 3
General simultaneous N player games.
3.1. Dominance solvable games (example: second-price auctions, Groves-Clarke mechanisms).
3.2. Solvability by iterated deletion of dominated strategies (example: Cournot competition).
3.3. Nash equilibrium. Definition and existence.
3.4. Correlated equilibrium.
3.5. Bayesian equilibrium (Example: first-price auctions).

Tema 4
Sequential games of perfect information.
4.1. Credible and non-credible threats.
4.2. Subgames.
4.3. Perfect Nash equilibrium.
4.4. Backward induction and Zermelo’s theorem.
4.5. Repeated games and the folk theorem.
4.6. Bargaining games.
4.6.1. The Nash solution: axiomatics.
4.6.2. The Nash solution as a non-cooperative solution (Rubinstein).
4.6.3. The Kalai-Smorodinsky solution.

Tema 5
A brief introduction to sequential games with imperfect information: the idea of forward induction.

Tema 6
More on mechanism design.

Tema 7
Matching.

Tema 8
Cooperative game theory.
8.1. Games in characteristic form.
8.2. The Core.
8.3. The Core with non-transferable utility (some examples: exchange economies, matching, majority voting).
8.4. The Shapley value.

Bibliografia
BINMORE, Ken. Fun and Games a Text on Game Theory. Lexington (Mass.) D. C.: Heath, 1992.
DIXIT, Avinash; NALEBUFF, Barry. Pensar estratégicamente: un arma decisiva en los negocios, la política y la vida diaria. Barcelona: Antoni Bosch, 1992.
FRIEDMAN, James W. Game Theory with Application to Economics. Nova York: Oxford University Press, 1991.
GARDNER, Roy. Juegos para empresarios y economistas. Barcelona: Antoni Bosch, 1996.
GIBBONS, Robert. Un primer curso de teoría de juegos. Barcelona: Antoni Bosch, 1993.
OSBORNE, Martin J. An introduction to game theory. Oxford University Press, 2003.
VEGA REDONDO, Fernando. Economía y juegos. Barcelona: Antoni Bosch, 2000.
VEGA REDONDO, Fernando. Game Theory and Economic Applications. Cambridge University Press, 2003.

There will be a midterm exam.
Exercises will be distributed weekly.
The course will not be entirely based on any of the books suggested but its content can be found on most of the recommended texts. More precise information will be given later on.