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Economic Applications of Game Theory

Economics MIT CC BY-NC-SA 4.0 25 lectures

Game theory is the mathematical analysis of strategic interaction. It is used to analyze situations in which one person’s best decision depends on the decisions taken by others. Examples include traditional games such as chess and poker, but also collusion by cartels, political competition, voting, bargaining, auctions, and evolution. This course will introduce the fundamental tools of game theory and use these tools to analyze applications.

Syllabus

  1. 1 Lecture 1: Introduction to Individual Decision-Making
  2. 2 Lecture 2: Representation of Games
  3. 3 Lecture 3: Dominance
  4. 4 Lecture 4: Rationalizability
  5. 5 Lecture 5: Nash Equilibrium
  6. 6 Lecture 6: Imperfect Competition
  7. 7 Lecture 7: Zero-Sum Games
  8. 8 Lecture 8: Backward Induction
  9. 9 Lecture 9: Negotiation
  10. 10 Lecture 10: Subgame-Perfect Nash Equilibrium
  11. 11 Lecture 11: One-Shot Deviation Principle and Bargaining
  12. 12 Lecture 12: Finitely Repeated Games
  13. 13 Lecture 13: Infinitely Repeated Games
  14. 14 Lecture 14: Folk Theorem
  15. 15 Lecture 15: Implicit Cartels
  16. 16 Lecture 16: Bayesian Games
  17. 17 Lecture 17: Bayesian Nash Equilibrium: Applications
  18. 18 Lecture 18: Auctions
  19. 19 Lecture 19: Revenue Equivalence
  20. 20 Lecture 20: Ad Auctions
  21. 21 Lecture 21: Perfect Bayesian Equilibrium
  22. 22 Lecture 22: Signaling
  23. 23 Lecture 23: Bargaining with Incomplete Information
  24. 24 Lecture 24: Cheap Talk
  25. 25 Lecture 25: Common Knowledge

Course materials