Game Theory in Dynamic Systems

Aims of the course

- To acquaint students with mathematical foundations for business decision-making that Game Theory relies upon.
- To enable understanding of principles in strategic decision-making that will be introduced in applications of the course's topics in various business situations.
- To grasp basic concepts used in describing and analyzing all types of competition of firms in markets, market entry decisions, negotiations, etc.

Course syllabus

1. Introduction to Game theory
2. Antagonistic and nonantagonistic games
3. N-Person games
3.1. Coalitions (the characteristic function)
3.2. Imputations (Dominance of Imputations, The Core, Constant-Sum Games, A Voting Game)
3.3. Startegic Equivalence (Equivalence and Imputations, (0,1)-Reduced Form)
3.4. Two Solution Concepts (Stable Sets of Imputations, Shapley Value)
4. Game-Playing Programs
4.1. Three Algorithms (The Naive Algorithm, The Branch and Bound Algorithm, The Alpha-Beta Pruning Algorithm)
4.2. Evaluation Functions
5. Differential Games
5.1. Two-Person Deterministic Continuous Differential Games
5.2 Two-Person Zero-Sum Differential Games
5.3. Pursuit Games
5.4. Coordination Differential Games
5.5. Noncooperative Differential Games

Course director(s)