San Francisco State University Mathematics Department Fall 2012 Math 490: Game Theory Instructor Jean-Pierre Langlois, PhD Office: TH 926 Email: langlois@math.sfsu.edu Web: http://userwww.sfsu.edu/~langlois Office Hours: Wed 12:00-3:00 Class meetings: TuTh 12:35-13:50 in TH 211 Jean-Pierre Langlois received his Ph.D. in Applied Mathematics from UC Berkeley in 1983. He has taught in Mathematics departments at UC Berkeley, UC Santa Cruz, and San Francisco State University, in the Government department at Georgetown University, and in the School of Business at the University of Versailles (France). His work in game theory and applications to politics and economics has appeared in academic journals such as American Journal of Political Science, World Politics, Journal of Mathematical Economics, International Studies Quarterly, British Journal of Political Science, and Journal of Conflict Resolution. His GamePlan software has been reviewed in The Economic Journal. Reading and Software Game Theory with GamePlan (Langlois, 2012) Lecture notes. downloadable at: http://userwww.sfsu.edu/~langlois/ GamePlan 3.5 for Game Theory Software (Langlois, 2012). downloadable at: http://userwww.sfsu.edu/~langlois/ Requirements and grading This course requires no specific mathematical background but students should have some mathematical maturity. Successful completion of Calculus II (Math 227) and some notions of probability theory are expected. Students should have good computer skills but no programming experience is required. Students must complete two modeling tests, homework assignments, and a term project during the course of the semester. The term project should involve the modeling, testing, solving and critical discussion of a realworld problem that can be formulated in game theoretic terms. Grading is based on two modeling tests (20% each), homework and participation (20%) and a term project (40%). Topics Game Theory is a branch of applied mathematics that deals with problems of conflict and cooperation by postulating rational decision makers. It is used as a formal modeling tool in the Social Sciences and in Biology. It has been applied to issues such as nuclear deterrence, arms and trade rivalries, economic competition and collusion, legislative bargaining, and biological evolution. This course will introduce the students to the concepts and techniques of game theory and will develop their ability to understand, design, solve, and criticize game models. Class will be a mix of lectures, discussions, simulations, and laboratory using the GamePlan computer software. Each topic below corresponds to about one week of classes, for a total of twelve weeks. The remaining three weeks will be devoted to the presentation and discussion of modeling cases. I. Basic Game Theory 1: Normal and extensive form games, strategy, best reply, and equilibrium. 2: Introduction to the GamePlan software. 3: The fundamental theorem (John Nash). II. Advanced Concepts 4: Equilibrium path, beliefs, information, sequential rationality. 5: Games of incomplete information. 6: Repeated and network games. III. Basic Applications 7: Learning, signaling and screening. 8: Deterrence. 9: Social Dilemma. IV. Advanced Topics 10: Repeated continuous games. 11: Strategic Bargaining. 12: Games of timing. Instructor Policy Students are expected and encouraged to participate and ask questions. Attendance is mandatory and instructor may take roll. All interactions should be courteous. Student complaints, if any, must be made privately and outside class. Cell phone use is strictly prohibited in class. Students must ensure that no device (cell phone, pager, etc) can ring during class or they will be asked to leave immediately. Late students may be turned away. 2 ______S A N F R A N C I S C O S T A T E U N I V E R S I T Y______ College of Science & Engineering D DR RO OP PP PIIN NG G,, W WIIT TH HD DR RA AW WIIN NG G& &G GR RA AD DIIN NG GO OP PT TIIO ON N P PR RO OC CE ED DU UR RE ESS ****D DR RO OPPPPIIN NG GD DU UR RIIN NG GT TH HEE FFIIR RSST TT TW WO OW WEEEEK KSS**** During the first two weeks of instruction, dropping a course(s) is permitted without academic penalty. No symbol is recorded on the student's permanent record. Students are responsible for making changes to their official academic schedule. If you decide not to attend a class you enrolled in, you must drop that class through GATOR REG during access hours. If you added a class during the first two weeks and then decide to drop, you must drop through GATOR REG during access hours. As a courtesy, you are expected to notify the instructor of your intent to drop the class. Aug 27 – Sep 10: Dropping class(es) using GATOR REG 8 a.m. to Midnight Sunday through Friday ****W WIIT TH HD DR RA AW WIIN NG GA AFFT TEER RT TH HEE FFIIR RSST TT TW WO OW WEEEEK KSS**** After the first two weeks of instruction, withdrawal from a course is not permitted except for serious and compelling reasons. The "W" grade carries no connotation of quality of student performance and is not used as units attempted in calculating grade point average or progress points. The expectation of being dropped for nonattendance is not a sufficient reason for withdrawal. Sep 11 - Nov 26: Withdrawal from a course(s) is permissible only for serious and compelling reasons. If the withdrawal is approved, the student will receive a “W” grade. PPR RO OC CEED DU UR REE:: Requests for withdrawal are to be reviewed by the Instructor and Department Chair. Students must submit their unofficial transcripts along with their petitions. Nov 27 - Dec 17: Withdrawals are normally not permitted during this period except in cases of verified accident or serious illness where the cause of withdrawal is due to circumstances clearly beyond the student's control and where the assignment of an incomplete is not practical. Ordinarily, withdrawals in this category involves a total withdrawal from the University. PPR RO OC CEED DU UR REE:: All requests during this period must be reviewed by the Instructor, Department Chair, and Associate Dean. Students must submit their unofficial transcripts and appropriate documentations along with their petitions. 3 ****C CR REED DIIT T//N NO OC CR REED DIIT TO OPPT TIIO ON N**** In a course where CR/NC grading is permitted, the student must notify the instructor and request it through GATOR REG on or before October 23rd. Requests for changes in grading option after the deadline are made on the Petition for Waiver of College Regulations form. The CR/NC grading symbols carry no grade point credit. The CR grading symbol used in an undergraduate level course is equivalent to grades A through C- or in a graduate level course is equivalent to grades A through B-. Students should be aware that other institutions often interpret CR as a C grade and NC as an F grade in evaluating transcripts. Grading option change after the deadline is seldom granted. ****A AU UD DIIT TIIN NG GA AC CLLA ASSSS**** To register in a class as an Auditor, the student must obtain instructor’s approval to audit by filling out a Waiver of College Regulations form. Auditors may not change to credit status and vice versa after the September 10th deadline. 4