Advanced Game Theory

The course covers the standard parts of non-cooperative game theory, focusing mostly on dynamic games. The teaching covers the most important solution concepts for strategic and extensive form games. We cover different approaches to sequential rationality in dynamic games. Also, the theory of games under uncertainty is discussed, leading to the extension of the solution concepts previously encountered. Furthermore, we study specific classes of games (e.g. supermodular games and global games) that are often used in economic theory. Finally, we illustrate a more axiomatic approach by discussing the basics of social choice theory.

We will formally show under which assumptions the covered solution concepts exist and derive certain properties. We will then illustrate and apply the solution concepts in examples and exercises.

This is a mathematically oriented course of game theory and covers topics as:

• Strategic form games: Pure and mixed strategies, dominant and dominated strategies, rationalizable strategies, Nash equilibrium
• Extensive form games: Sequential rationality, backward induction, sub-game perfect equilibrium, sequential equilibrium
• Dynamic games of complete information: Bargaining games, repeated games
• Games of incomplete information: Bayesian Nash equilibrium, perfect Bayesian equilibrium

A detailed lecture schedule will be published in Absalon at the start of the term.