San Francisco State University Mathematics Department Fall 2009 Math 490: Game Theory Instructor Jean-Pierre Langlois, PhD Office: TH 926 Phone: x82136 Email: langlois@math.sfsu.edu Web: http://userwww.sfsu.edu/~langlois Office Hours: Wed 12:00-3:00 Class meetings: TuTh 15:35-16:50 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 application 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 Applicable Game Theory (Langlois, 1997-2002) Lecture notes. downloadable at: http://userwww.sfsu.edu/~langlois/ GamePlan 2.7 and 3.0 Game Theory Software (Langlois, 1996-2009). downloadable at: http://www.gametheorysoftware.net A video demonstrating the use of GamePlan can be viewed at http://math.sfsu.edu/langlois/ Requirements and grading This course requires no specific mathematical background but students must have some mathematical maturity. Successful completion of Calculus II (Math 227) is required and Linear Algebra (Math 325) and Differential Equations (Math 376) are advised. Students should also have good computer skills although 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 formulation and the modeling of a game problem, its testing and solving, and a critical discussion of its predictions. Grading will be based on two modeling tests (20%+20%), homework (20%) and the 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 increasingly used as a formal modeling tool in the Social Science. It has been applied to issues such as nuclear deterrence, arms and trade rivalries, economic competition and collusion, legislative bargaining, and evolution dynamics. 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 time will be divided between lectures, discussions, simulations, and laboratory sessions 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 and compellence. 9: Social Dilemma. Engineering cooperation. IV. Advanced Topics 10: Repeated continuous games. 11: Strategic Bargaining. 2 12: Games of timing. Instructor Policy Students are expected and encouraged to participate and ask questions. Lecture attendance is mandatory and instructor may take roll and apply penalties for repeat nonattendance. Students are entirely responsible for dropping the class, even if not attending. 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 sound during class or they will be asked to leave immediately. Late students may be turned away. College and Department Policy ____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 25 – Sep 11: Dropping class(es) using GATOR REG 8 a.m. to Midnight Monday 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 3 is not a sufficient reason for withdrawal. Sep 12 - Nov 19: 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 20 - Dec 14: 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. ****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 20th. Requests for changes in grading option after the deadline are made on the Petition for Waiver of College Regulations form and must be accompanied by an ADD 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 approval to audit by having the instructor sign an ADD form with the Audit bubble marked. Auditors may not change to credit status and vice versa after the September 11th deadline. Students with Disabilities Students with disabilities who need reasonable accommodations are encouraged to contact the instructor. The Disability Programs and Resource Center (DPRC) is available to facilitate the reasonable accommodations process. The DPRC is located in the Student Service Building and can be reached by telephone (voice/TTY 415-338-2472) or by email (dprc@sfsu.edu).” (http://www.sfsu.edu/~dprc/facultyfaq.html#1) 4 Religious Holidays The San Francisco State University policy is to make reasonable accommodations “for students to observe religious holidays when such observances require students to be absent from class activities….” For your convenience, the following is a link to an Interfaith Calendar which lists “Primary sacred times for world religions”: http://www.interfaithcalendar.org/. Complete details regarding this Policy, including implementation can be found on the Academic Senate Web Page at: http://www.sfsu.edu/~senate/documents/policies/F00-212.pdf 5