Welcome to Game Theory

Start Date: 02/23/2020

Course Type: Common Course

Course Link: https://www.coursera.org/learn/game-theory-introduction

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About Course

This course provides a brief introduction to game theory. Our main goal is to understand the basic ideas behind the key concepts in game theory, such as equilibrium, rationality, and cooperation. The course uses very little mathematics, and it is ideal for those who are looking for a conceptual introduction to game theory. Business competition, political campaigns, the struggle for existence by animals and plants, and so on, can all be regarded as a kind of “game,” in which individuals try to do their best against others. Game theory provides a general framework to describe and analyze how individuals behave in such “strategic” situations. This course focuses on the key concepts in game theory, and attempts to outline the informal basic ideas that are often hidden behind mathematical definitions. Game theory has been applied to a number of disciplines, including economics, political science, psychology, sociology, biology, and computer science. Therefore, a warm welcome is extended to audiences from all fields who are interested in what game theory is all about.

Course Syllabus

Is it possible to analyze a wide variety of social and economic problems using a unified framework? In the first module, we address this question. We will see that the concept of rational decision making is useful, but it is not quite sufficient to provide governing principles. Motivated examples and some history of game theory will be provided. You will also be asked to play a simple card game to see how it feels to make your decisions strategically.

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Course Introduction

Welcome to Game Theory This course introduces the basic concepts of game theory, and is the first part of a two-course sequence. In the first part, we will analyze strategic situations in which either the USSR or the West German defense industries are involved. In the second part, we will think about game theory in action. Both parts of the course can be taken independently or in sequence depending on your needs and preferences.Module 1: Strategic Situation and Security Context Module 2: Unitarity, State, and Nationalism Module 3: The State Sector and the Economy Module 4: State and Localism Wharton Business Foundations Capstone In this Wharton-designed capstone, you will apply the knowledge you’ve acquired about business and its most fundamental principles to a real world situation. Wharton-designed projects help students apply knowledge and skills from Wharton's numerous specializations across many disciplines, enabling them to create a meaningful first job offer or rejection notice, negotiate a job offer, or even initiate a legal action’ against their employer.Wharton-designed projects help students apply knowledge and skills from Wharton's numerous specializations across many disciplines, enabling them to create a meaningful first job offer or rejection notice, negotiate a job offer, or even initiate a legal action Wharton-designed projects help students apply knowledge and skills from Wharton’s numerous specializations across many disciplines, enabling them to create

Course Tag

Nash Equilibrium Game Theory Strategic Planning

Related Wiki Topic

Article Example
Quantum game theory Quantum game theory is an extension of classical game theory to the quantum domain. It differs from classical game theory in three primary ways:
Game theory According to Maynard Smith, in the preface to "Evolution and the Theory of Games", "paradoxically, it has turned out that game theory is more readily applied to biology than to the field of economic behaviour for which it was originally designed". Evolutionary game theory has been used to explain many seemingly incongruous phenomena in nature.
Game theory In addition to being used to describe, predict, and explain behavior, game theory has also been used to develop theories of ethical or normative behavior and to prescribe such behavior. In economics and philosophy, scholars have applied game theory to help in the understanding of good or proper behavior. Game-theoretic arguments of this type can be found as far back as Plato.
Game theory This theory was developed extensively in the 1950s by many scholars. Game theory was later explicitly applied to biology in the 1970s, although similar developments go back at least as far as the 1930s. Game theory has been widely recognized as an important tool in many fields. With the Nobel Memorial Prize in Economic Sciences going to game theorist Jean Tirole in 2014, eleven game-theorists have now won the economics Nobel Prize. John Maynard Smith was awarded the Crafoord Prize for his application of game theory to biology.
Game theory Some game theorists, following the work of John Maynard Smith and George R. Price, have turned to evolutionary game theory in order to resolve these issues. These models presume either no rationality or bounded rationality on the part of players. Despite the name, evolutionary game theory does not necessarily presume natural selection in the biological sense. Evolutionary game theory includes both biological as well as cultural evolution and also models of individual learning (for example, fictitious play dynamics).
Game theory Game theory has come to play an increasingly important role in logic and in computer science. Several logical theories have a basis in game semantics. In addition, computer scientists have used games to model interactive computations. Also, game theory provides a theoretical basis to the field of multi-agent systems.
Game theory "Liar Game" is a popular Japanese Manga, television program and movie, where each episode presents the main characters with a Game Theory type game. The show's supporting characters reflect and explore game theory's predictions around self-preservation strategies used in each challenge. The main character however, who is portrayed as an innocent, naive and good hearted young lady Kansaki Nao, always attempts to convince the other players to follow a mutually beneficial strategy where everybody wins. Kansaki Nao's seemingly simple strategies that appear to be the product of her innocent good nature actually represent optimal equilibrium solutions which Game Theory attempts to solve. Other players however, usually use her naivety against her to follow strategies that serve self-preservation. The show improvises heavily on Game Theory predictions and strategies to provide each episode's script, the players decisions. In a sense, each episode exhibits a Game Theory game and the strategies/ equilibria/ solutions provide the script which is coloured in by the actors.
Generalized game theory Generalized game theory is an extension of game theory incorporating social theory concepts such as norm, value, belief, role, social relationship, and institution. The theory was developed by Tom R. Burns, Anna Gomolinska, and Ewa Roszkowska but has not had great influence beyond these immediate associates. The theory seeks to address certain perceived limitations of game theory by formulating a theory of rules and rule complexes and to develop a more robust approach to socio-psychological and sociological phenomena.
Behavioral game theory Traditional Game theory uses theoretical models to determine the most beneficial choice of all players in a game. Game theory uses rational choice theory along with assumptions of players' common knowledge in order to predict utility-maximizing decisions. It also allows for players to predict their opponents' strategies. Traditional game theory is a primarily normative theory as it seeks to pinpoint the decision rational players should choose, but does not attempt to explain why that decision was made. Rationality is a primary assumption of game theory, so there are not explanations for different forms of rational decisions or irrational decisions.
Game theory The application of game theory to political science is focused in the overlapping areas of fair division, political economy, public choice, war bargaining, positive political theory, and social choice theory. In each of these areas, researchers have developed game-theoretic models in which the players are often voters, states, special interest groups, and politicians.
Game theory Game theory experienced a flurry of activity in the 1950s, during which time the concepts of the core, the extensive form game, fictitious play, repeated games, and the Shapley value were developed. In addition, the first applications of game theory to philosophy and political science occurred during this time.
Game theory As a method of applied mathematics, game theory has been used to study a wide variety of human and animal behaviors. It was initially developed in economics to understand a large collection of economic behaviors, including behaviors of firms, markets, and consumers. The first use of game-theoretic analysis was by Antoine Augustin Cournot in 1838 with his solution of the Cournot duopoly. The use of game theory in the social sciences has expanded, and game theory has been applied to political, sociological, and psychological behaviors as well.
Game theory Game theory is "the study of mathematical models of conflict and cooperation between intelligent rational decision-makers." Game theory is mainly used in economics, political science, and psychology, as well as logic, computer science and biology. Originally, it addressed zero-sum games, in which one person's gains result in losses for the other participants. Today, game theory applies to a wide range of behavioral relations, and is now an umbrella term for the science of logical decision making in humans, animals, and computers.
Game theory These are games the play of which is the development of the rules for another game, the target or subject game. Metagames seek to maximize the utility value of the rule set developed. The theory of metagames is related to mechanism design theory.
Behavioral game theory Behavioral game theory analyzes interactive strategic decisions and behavior using the methods of game theory, experimental economics, and experimental psychology. Experiments include testing deviations from typical simplifications of economic theory such as the independence axiom and neglect of altruism, fairness, and framing effects. As a research program, the subject is a development of the last three decades. Traditional game theory focuses on mathematical equilibriums, utility maximizing, and rational choice; in contrast, behavioral game theory focuses on choices made by participants in studies and is game theory applied to experiments. Choices studied in behavioral game theory are not always rational and do not always represent the utility maximizing choice.
Behavioral game theory Behavioral game theory is a primarily positive theory rather than a normative theory. A positive theory is objective and based on facts. Positive theories must be testable and can be proven true or false. A normative theory is subjective and based on opinions. Because of this, normative theories cannot be proven true or false. Behavioral game theory attempts to explain decision making using experimental data. The theory allows for rational and irrational decisions because both are examined using real-life experiments. Specifically, behavioral game theory attempts to explain factors that influence real world decisions. These factors are not explored in the area of traditional game theory, but can be postulated and observed using empirical data. Findings from behavioral game theory will tend to have higher external validity and can be better applied to real world decision-making behavior.
Game theory Some scholars, like Leonard Savage, see game theory not as a predictive tool for the behavior of human beings, but as a suggestion for how people ought to behave. Since a strategy, corresponding to a Nash equilibrium of a game constitutes one's best response to the actions of the other players – provided they are in (the same) Nash equilibrium – playing a strategy that is part of a Nash equilibrium seems appropriate. This normative use of game theory has also come under criticism.
Game theory Game theory did not really exist as a unique field until John von Neumann published a paper in 1928. Von Neumann's original proof used Brouwer's fixed-point theorem on continuous mappings into compact convex sets, which became a standard method in game theory and mathematical economics. His paper was followed by his 1944 book "Theory of Games and Economic Behavior" co-authored with Oskar Morgenstern. The second edition of this book provided an axiomatic theory of utility, which reincarnated Daniel Bernoulli's old theory of utility (of the money) as an independent discipline. Von Neumann's work in game theory culminated in this 1944 book. This foundational work contains the method for finding mutually consistent solutions for two-person zero-sum games. During the following time period, work on game theory was primarily focused on cooperative game theory, which analyzes optimal strategies for groups of individuals, presuming that they can enforce agreements between them about proper strategies.
Game theory Game theory has been put to several uses in philosophy. Responding to two papers by , used game theory to develop a philosophical account of convention. In so doing, he provided the first analysis of common knowledge and employed it in analyzing play in coordination games. In addition, he first suggested that one can understand meaning in terms of signaling games. This later suggestion has been pursued by several philosophers since Lewis. Following game-theoretic account of conventions, Edna Ullmann-Margalit (1977) and Bicchieri (2006) have developed theories of social norms that define them as Nash equilibria that result from transforming a mixed-motive game into a coordination game.
Game theory Cooperative games are often analysed through the framework of "cooperative game theory", which focuses on predicting which coalitions will form, the joint actions that groups take and the resulting collective payoffs. It is opposed to the traditional "non-cooperative game theory" which focuses on predicting individual players' actions and payoffs and analyzing Nash equilibria.