English

If sufficient demand

This course is an introduction to the fundamentals of game theory. Game theory is the study of strategic decision making. Specifically, it is "the study of mathematical models of conflict and cooperation between intelligent rational decision-makers". Another description is multi-agent optimization. Motivations are drawn from engineered/networked systems (including distributed control of wireline and wireless communication networks, incentive-compatible/dynamic resource allocation, multi-agent systems, pricing and investment decisions in the Internet), and social models (including social and economic networks). The course emphasizes the theoretical foundations, mathematical tools, modeling, and equilibrium notions in different environments.

Different forms of games such as strategic form games, extensive games, repeated games and differential games. Tools to investigate equilibrias of games; iterated strict dominance and Nash equilibrium. Further, concepts as rationalizability, learning and evolution in games will be covered. Additionally, the course covers game theory that describes auctions, bargaining, games with incomplete information, differential games, resource allocation and pricing.

Understand the differences between strategic form games, extensive games, repeated games, differential games and games with incomplete information.

Have knowledge about the mathematical backgorund of iterated strict dominance, Nash equilibrium and understand the notion of mixed strategies.

Understand concepts such as rationalizability, evolution and learning in games.

Be able to use iterated strict dominance, theory for repeated games and the theory of Nash equilibirum to find the equilibrium/equilibria of a game.

Be able to formulate engineering problems as game-theory problems.

Be able to discuss a game's structure and possible equilibrium/equilibria by the theory covered in the course.

Judge the suitability of different game theory formulations and equilibrium concepts for engineering problems.

Lectures

Exercises

Project

Self-study literature review

Most of the material is covered by self studies except the material on differential games where lectures are offered.

Written assignments

Seminars given by participants

Failed, pass

Fudenberg, Drew & Tirole., J.: Game Theory. MIT Press,.

We will also use course material from MIT OpenCoursware
"Game Theory with Engineering Applications"

FRT032F

 -02-10

FN1/Anders Gustafsson