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Course Code Course Title L T P C
BHUM209L Game Theory 3 0 0 3
Pre-requisite NIL Syllabus version
1.0
Course Objectives
1. To provide game theory fundamentals so as to apply the same in their
professional life
2. To make the students understand the strategic interactions between players
using game theory
3. To provide tools of game theory to apply in different decision making situations
Course Outcomes
Upon successful completion of the course students will be able to
1. Describe and apply knowledge of strategic games with perfect information.
2. Identify Nash equilibrium in games.
3. Describe mixed strategy games.
4. Analyze extensive games with perfect information.
5. Describe extensive games with imperfect information.
6. Apply bargaining in Game theory setting.
Module:1 Games with Perfect Information 5 hours
Strategic Games and Examples. Nash Equilibrium, Strict and Nonstrict Nash
Equilibria, Best Response Functions, Dominated Actions - Strict and Weak
Domination, Symmetric Games.
Module:2 Nash Equilibrium 6 hours
Cournot’s Model of Oligopoly - Bertrand’s Model of Oligopoly, Electoral
Competition, Median Voter Theorem and Auctions.
Module:3 Mixed Strategy Equilibrium 5 hours
Randomization and Expected Payoffs, Mixed Strategy Nash Equilibrium and
Properties, Dominated Actions – Strict and Weak Domination.
Module:4 Extensive Games with Perfect Information 7 hours
Strategies and Outcomes, Nash Equilibrium, Subgame Perfect Equilibrium,
Backward Induction, The Ultimatum game, The Holdup game and Stackelberg’s
Model of duopoly, Properties of Subgame perfect equilibrium.
Module:5 Extensive Games with Imperfect Information 6 hours
Strategies and Nash Equilibrium, Beliefs and Sequential equilibrium,
Sequential Rationality, Signaling Games, Separating and Pooling Equilibrium.
Module:6 Repeated Games 7 hours
Finitely and Infinitely Repeated Prisoner’s dilemma, Grim Trigger and Tit-for-tat
Strategies, Nash Equilibria of General Infinitely Repeated Games, Finitely
Repeated Games.
Module:7 Bargaining 7 hours
Bargaining as an Extensive Game, Nash’s axiomatic Model, Bargaining Solution,
Pareto Efficiency and Symmetry, Nash Bargaining Solution.
Module:8 Contemporary Issues 2 hours
Total Lecture Hours 45 hours
Text Book (s)
Avinash Dixit, Susan Skeath and David McAdams (2020), Games of
1.
Strategy. W.W.Norton and Co, Fifth Edition.
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Bernhard Von Stengel (2021), Game Theory Basics. Cambridge University
2.
Press, 1st Edition.
Reference Books
1. Drew Fudenberg and Jean Tirole (1991), Game Theory. MIT Press, 1st Edition.
2. Osborne, Martin J (2012), An Introduction to Game Theory. Oxford
University Press, 1st Edition.
Mode of Evaluation: CAT, Quiz, Assignment and FAT
Recommended by Board of Studies 23-02-2023
Approved by Academic Council No. 69 Date 16-03-2023
Proceedings of the 69th Academic Council (16.03.2023) 221
