JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY HYDERABAD

Prerequisites

Graph Theory

Course Objectives:

• 1. To teach students some strategic considerations to take into account making their choices.
• 2. To learn basic concepts of game theory.
• 3. To apply game theoretic models to real world problems

Course Outcomes:

• 1. Solve strategic games between two and more agents in non-cooperative scenario.
• 2. Analyze and solve both simultaneous-moves and sequential-moves games.
• 3. Learn different methods to solve games.

UNIT - I

Introduction: games and decisions, Games Strategies, Costs and Payoff, Basic Solution Concepts, Finding equilibria and Learning in Games

UNIT - II

Zero-Sum Games: secure strategy, Maximin, Maximax, and Minimax Regret Solvability, value of a game. Normal form games: dominance, iterated dominance, Nash equilibrium. N-player games, mixed strategy nash equilibria.

UNIT - III

Graphical Games: Computing Nash, equilibria in Tree Graphical Games, Graphical Games and correlated Equilibria. Extensive form games: subgame perfection, sequential equilibrium, Stackelberg Model of Duopoly, Buying Votes, Committee Decision-Making. Bargaining: Rubinstein bargaining, Nash bargaining.

UNIT - IV

Repeated Games: Folk theorem and repeated prisoner’s dilemma. Tacit collusion. Incomplete information games: Bayesian equilibrium, higher order beliefs.

UNIT - V

Auctions and Mechanism Design: Basic auctions, voting, Vickrey-Clarke-Groves Auction. Cryptography and Game theory: cryptographic influence on game theory and Game theoretic influence on cryptography

TEXT BOOKS:

• 1. A Course in Game Theory by M. J. Osborne & A. Rubinstein, MIT Press.

REFERENCES:

• 1. Algorithmic Game Theory by N. Nisan, T. Rougharden, E. Tardos and V. V. Vazirani, Cambridge University Press.
• 2. Game Theory and Applications by TatsuroIchiishi, Abraham Neyman and YairTauman, Elsevier.
• 3. Essentials of Game Theory: A Concise, Multidisciplinary Introduction by K. Leyton-Brown and Y.Shoham, Morgan & Claypool Publishers.