Game Theory

Go to Course: https://www.coursera.org/learn/game-theory-1

Introduction

**Course Review and Recommendation: Game Theory on Coursera** In an increasingly interconnected world where strategic decision-making has real-world implications, understanding the principles of game theory has never been more crucial. The "Game Theory" course offered on Coursera provides learners with an in-depth exploration of this fascinating subject. Whether you're a student of economics, a professional in the business sector, or simply someone interested in enhancing your problem-solving skills, this course promises to deliver valuable insights and knowledge. ### **Course Overview** Popularized by films such as "A Beautiful Mind," game theory delves into the mathematical modeling of strategic interactions among rational and sometimes irrational agents. This course goes beyond conventional games like chess or poker and touches upon critical real-world applications, including geopolitical conflicts, business competition, and economic behaviors in markets like the NYSE. Throughout the course, students will learn how to model various interactions — from keyword auctions to peer-to-peer file sharing networks. ### **Syllabus Breakdown** The syllabus spans eight weeks, each focusing on different facets of game theory: - **Week 1: Introduction and Overview** - The course begins with an introduction to the fundamental concepts of game theory, including normal forms, payoffs, strategies, and Nash equilibria. This foundational week sets the stage for the more complex topics that follow. - **Week 2: Mixed-Strategy Nash Equilibrium** - Here, learners will explore the intricacies of both pure and mixed strategy Nash equilibria, shedding light on how players can remain unpredictable while still maximizing their payoffs. - **Week 3: Alternate Solution Concepts** - This week covers various strategic solutions, including iterative removal of dominated strategies, minimax strategies, and the concept of correlated equilibria, refining the students' understanding of competitive scenarios. - **Week 4: Extensive-Form Games** - Students will be introduced to more complex decision-making frameworks, including trees, backward induction, and subgame perfect equilibrium, which are essential for understanding dynamic interactions among players. - **Week 5: Repeated Games** - Focusing on the repeated prisoners' dilemma, this week discusses finite and infinite games, along with key concepts such as folk theorems and stochastic games, which add depth to the strategic analysis over time. - **Week 6: Bayesian Games** - This section delves into games where players have incomplete information, introducing the concepts of ex ante and interim Bayesian Nash equilibria, which are crucial for real-world applications involving uncertainty. - **Week 7: Coalitional Games** - Covering cooperative game theory, this week discusses the Shapley value, core, and practical applications of cooperation among agents, enhancing the learner's grasp of how groups can work together strategically. - **Week 8: Final Exam** - The course culminates with a comprehensive final exam that reinforces the concepts learned throughout. ### **Why You Should Take This Course** 1. **Diverse Applications**: The principles of game theory can be applied across various fields, including economics, political science, and business strategy. This course equips students with tools that are versatile and relevant in many contexts. 2. **Expert Instruction**: The course is structured and delivered by experts in the field, ensuring learners receive high-quality education backed by robust theoretical foundations. 3. **Interactive Learning**: The course typically includes quizzes, assignments, and forums where students can engage with peers, allowing for a more interactive and collaborative learning experience. 4. **Flexibility**: As with most Coursera offerings, students can learn at their own pace, making it an excellent choice for those balancing work or other commitments while pursuing education. 5. **Skill Development**: Understanding game theory not only enhances analytical skills but also improves strategic thinking, better preparing students for decision-making scenarios in their professional lives. ### **Final Thoughts** In an era where the intersection of strategy, cooperation, and conflict is a fundamental aspect of many sectors, the Game Theory course on Coursera presents an invaluable opportunity. By comprehensively covering the theoretical underpinnings and practical applications of game theory, it will undoubtedly broaden your understanding of strategic interactions in both professional settings and everyday life. Dive into this course and enhance your strategic thinking skills today!

Syllabus

Week 1: Introduction and Overview

Introduction, overview, uses of game theory, some applications and examples, and formal definitions of: the normal form, payoffs, strategies, pure strategy Nash equilibrium, dominant strategies

pure and mixed strategy Nash equilibria

Iterative removal of strictly dominated strategies, minimax strategies and the minimax theorem for zero-sum game, correlated equilibria

Perfect information games: trees, players assigned to nodes, payoffs, backward Induction, subgame perfect equilibrium, introduction to imperfect-information games, mixed versus behavioral strategies.

Repeated prisoners dilemma, finite and infinite repeated games, limited-average versus future-discounted reward, folk theorems, stochastic games and learning.

General definitions, ex ante/interim Bayesian Nash equilibrium.

Transferable utility cooperative games, Shapley value, Core, applications.

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