Advanced Strategic Game Theory
Notices
The course will start on 2nd of April 2013.
The last lecture will take place Friday, 24th of May 2013.
The course will take place at Science Park:
Tuesdays 1517 in the room A1.04
Fridays 1113 in the room D1.114
(except April 26  then it is in A1.04, and
May 17  then it is in D1.113)
Lecturer
Krzysztof R. Apt
Website of the course
website
Prerequisites
Really basic knowledge of linear algebra and
calculus. Some maturity in following the mathematical arguments.
Objectives
The aim of this course is to introduce the main concepts concerned with strategic games (sometimes called noncooperative games) and illustrate them by an analysis of various example games.
Contents
Strategic games deal with the analysis of interaction between rational
players, where rationality is understood as utility maximization. In
strategic games the players take their actions simultaneously and the
utility (payoff) for each player depends on the resulting joint
action.
The course will introduce the basic concepts, such as pure and mixed
strategies, best response, Nash equilibrium, strictly and weakly
dominated strategies, Pareto efficient outcome, rationalizability,
preBayesian games, and Bayesian games. Also other forms of equilibria
will also be studied.
We shall discuss such wellknown examples as the prisoner's dilemma,
beauty contest games, and tragedy of the commons. Also, we shall use
the introduced concepts to analyze some wellknown examples of
strategic games studied in economics: Cournot competition, Bernard
competition and location game. Other classes of games will include
congestion games and social network games.
Finally, we shall consider mechanism design, the aim of which is to
arrange the economic interactions in such a way that when everyone
behaves in a selfinterested manner, the result is satisfactory for
everybody.
Grading Information
Final grades (posted 4 June 2013)
Important notice: All exams are open book exams. Computers are also allowed.
Problems 2 solve
will be posted here.
Note: you are welcome to send your solutions by email to
the TA of the course, Facundo Carreiro. For his email see
his homepage. Please use
subject: Solution to an assignment
or hand them in at the beginning of the lecture.
All email submissions will be acknowledged by email. So if you don't get any acknowledgement, please contact me.
Course material
 Resources on Game Theory

A chronology of game theory
Paul Walker.

Equilibrium Points in NPerson Games
John F. Nash.
 A course in game theory
M.J. Osborne and A. Rubinstein. MIT Press, 1994 (free download).
 Game Theory .net
('A resource for educators and students of game theory')

Game Theory R. Aumann
(An excellent survey of game theory, with fragments about strategic games.)

Games
Chapter 6 from
D. Easley and J. Kleinberg, Networks, Crowds, and Markets: Reasoning About a Highly Connected World. Cambridge University Press, 2010.

Potential Games
Chapter 8 from
S. Tijs, Introduction to Game Theory, Hindustan Book Agency, 2003.

BestResponse Dynamics and Nash equilibria
pages 690700 from
J. Kleinberg and E. Tardos, Algorithm Design. AddisonWesley, 2005.

Modeling Network Traffic using Game Theory
Chapter 8 from
D. Easley and J. Kleinberg, Networks, Crowds, and Markets: Reasoning About a Highly Connected World. Cambridge University Press, 2010.

Game Theory Text
T. S. Ferguson (Parts II and III are about strategic games.)

Multiagent Systems, Algorithmic, GameTheoretic, and Logical Foundations
Y. Shoham and K. LeytonBrown. Cambridge University Press, 2009 (free download).

Auctions
Chapter 9 from
Yoram Bauman and Grady Klein, The Cartoon Introduction to Economics: Volume One: Microeconomics.
Hill and Wang, 2010.
 Lecture Notes
from most of the lectures will be added
here.
Nash Equilibria and Social Optima 
notes

Strict Dominance 
notes

Weak Dominance and Never Best Responses 
notes

Regret Minimization and Security Strategies 
notes

Strictly Competitive Games 
notes

Mixed Extensions 
notes

Elimination by Mixed Strategies 
notes

Alternative Concepts 
notes

Mechanism Design 
notes

Lecture Notes as one file
 Slides
from some of the lectures will be added
here.