FINAN 7845 - Introduction to Game Theory

This course introduces non-cooperative game theory at a PhD level. Game-theoretic models allow for the study of strategic behavior when incentives for one player depend on the likely choices by other players. Building on choice and utility theory we review key results on optimization before introducing normal form games. Dominance, rationalizability and Nash Equilibrium are introduced as solution concepts. We then turn to a development of games in which there is an explicit notion of time, extensive form games. here the concept of Nash Equilibrium is refined to capture a notion of credibility, allowing us to study subgame perfection. We then capture incomplete and imperfect information introduce the equilibrium concepts of Perfect Bayesian and Sequential Equilibria. Applications include bargaining, communications, auctions, contests, elections, voting, mechanism design.