V31.0310: Strategic Decision Theory
(aka Game Theory)
Professor: Andrea Wilson (aw72@nyu.edu)
Class: T Th 2:00-3:15, 19 W 4th St #102
O¢ ce Hours: by appointment or Fri 2-3, 19 W 4th St #614
Website: on blackboard
Check here for announcements, problem & solution sets, and (usually) lecture notes
Course Description: This course is an introduction to noncooperative game theory. We will focus on
a rigorous development of the basic theory (formal topics include games in strategic form, games in
extensive form, and Bayesian games/games with incomplete information), with applications such as:
competition among oligopolists, bargaining, auction theory, and voting mechanisms.
Evaluation: 35% problem sets, + max of {(20% midterm, 45% …nal), (30% midterm, 35% …nal)}. NOTE:
(i) no late problem sets will be accepted; (ii) in lieu of ‡exibility on the deadline, only the best 5 of 6
problem sets will count.
Textbook:
Online Lecture Notes
An Introduction to Game Theory, by Martin J. Osborne (recommended supplement)
Tentative Lecture Schedule
Lecture #/ Date
Lecture Material
1 (Jan 19)
one-shot strategic games; pure strategy NE (up to p. 32)
2 (Jan 21)
pure strategy NE continued (rest of chapter 2)
3 (Jan 26)
NE applications, + expected utility review (based on ch. 3)
4 & 5 (Jan 28, Feb 2)
mixed strategy equilibrium (Ch 4,11,12)
6 & 7 (Feb 4,9)
extensive games w/ perfect info: theory (Ch 5)
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Lecture # and Date
Lecture Material
8 & 9 (Feb 11, 16)
Extensive Games w/ Perfect Info: Applications(Ch 6, 7)
10 (Feb 18)
Mixed Strategies in Extensive Games
11, 12 (Feb 23, 25)
Repeated Games (Finite)
13 (March 2)
Bargaining (Ch 16.1, 16.2)
14 (March 4)
In…nitely Repeated Games
15 (March 4)
Examples and Review
16 (March 11)
MIDTERM: THURS MARCH 11
Spring Break: March 15-19
17 (March 23)
Midterm Review; Bayesian Games (Ch 9)
18 (March 25)
Finish Bayesian Games: The Basics (Ch 9)
19 (March 30)
Application #1: Auctions
20 (Apr 1)
Application #2: Juries & Voting Games
21 (Apr 6)
Extensive Bayesian Games: The Basics (Ch 10)
22 (Apr 8)
Application #1: PBE in Chain Store Game
23 (Apr 13)
Application #2: PBE in "Baby Poker"; SE Intro
24 (Apr 15)
Sequential vs NE vs PBE: Selten’s Horse
25-27 (Apr 20,22,27)
Applications
signalling games; cheap talk; reputation;
other topics to be determined based on interest
28 (Apr 29)
Done, Review!
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