This course introduces the fundamentals of game theory, covering simultaneous and sequential games, mixed strategies, and evolutionary game theory. It also explores matching algorithms, voting systems, cooperative games, fair division, auctions, and network effects.

Lectures-Tutorials-Practicals-Credits: 4-0-0-4

Week 1: Introduction to game theory; Types of games (complete/incomplete information, cooperative vs non-cooperative); Dominant strategies and equilibrium concepts; Prisoner's dilemma.

Week 2: Solving games; Nash equilibrium (concept, computation, interpretation); Applications (Braess's paradox, Cournot competition, location models).

Week 3: Mixed strategy Nash equilibrium; Dominance and equilibrium refinements; Applications (bystander effect, war games, coordination problems).

Week 4: Extensive form games; Game trees and strategies; Backward induction; Subgames and subgame perfect equilibrium.

Week 5: Repeated games (finite and infinite); Cooperation and trigger strategies; Evolutionary game theory; ESS concepts.

Week 6: Bayesian games; Incomplete information; Auctions and strategic behavior; Introduction to cooperative game theory; Stable matching.

Week 7: Matching theory; Gale-Shapley algorithm; Stability and optimality; Applications (college admissions, labor markets).

Week 8: Information cascades and herding; Social choice theory; Voting systems; Arrow's impossibility theorem.

Week 9: Network effects; Markets with network goods; Strategic behavior and intermediaries; Condorcet jury theorem.

Week 10: Auction theory; Auction formats (English, Dutch, sealed-bid, Vickrey); Bidding strategies; Revenue equivalence.

Week 11: Cooperative game theory; Shapley value; Fair division; Power indices.

Week 12: Cost-sharing and core concepts; Bankruptcy problems; Fair allocation; Sponsored search and auction-based markets.