PTCCS348 Game Theory Syllabus:
PTCCS348 Game Theory Syllabus – Anna University Part time Regulation 2023
COURSE OBJECTIVES:
To introduce the student to the notion of a game, its solutions concepts, and other basic notions and tools of game theory, and the main applications for which they are appropriate, including electronic trading markets.
To formalize the notion of strategic thinking and rational choice by using the tools of game theory, and to provide insights into using game theory in 41odeIIing applications.
To draw the connections between game theory, computer science, and economics, especially emphasizing the computational issues.
To introduce contemporary topics in the intersection of game theory, computer science, and economics.
To apply game theory in searching, auctioning and trading.
UNIT I INTRODUCTION
Introduction — Making rational choices: basics of Games — strategy — preferences — payoffs — Mathematical basics — Game theory — Rational Choice — Basic solution concepts-noncooperative versus cooperative games — Basic computational issues — finding equilibria and learning in games- Typical application areas for game theory (e.g. Google’s sponsored search, eBay auctions, electricity trading markets).
UNIT II GAMES WITH PERFECT INFORMATION
Games with Perfect Information — Strategic games — prisoner’s dilemma, matching pennies – Nash equilibria —mixed strategy equilibrium — zero-sum games
UNIT III GAMES WITH IMPERFECT INFORMATION
Games with Imperfect Information — Bayesian Games — Motivational Examples — General Definitions — Information aspects — Illustrations — Extensive Games with Imperfect — Information — Strategies — Nash Equilibrium —Repeated Games — The Prisoner’s Dilemma — Bargaining
UNIT IV NON-COOPERATIVE GAME THEORY
Non-cooperative Game Theory — Self-interested agents — Games in normal form — Analyzing games: from optimality to equilibrium — Computing Solution Concepts of Normal — Form Games — Computing Nash equilibria of two-player, zero-sum games —Computing Nash equilibria of twoplayer, general- sum games — Identifying dominated strategies
UNIT V MECHANISM DESIGN
Aggregating Preferences — Social Choice — Formal Model — Voting — Existence of social functions — Ranking systems — Protocols for Strategic Agents: Mechanism Design — Mechanism design with unrestricted preferences
30 PERIODS
COURSE OUTCOMES:
Upon Completion of the course, the students will be able to
CO1:Discuss the notion of a strategic game and equilibria and identify the characteristics of main applications of these concepts.
CO2:Discuss the use of Nash Equilibrium for other problems.
CO3:Identify key strategic aspects and based on these be able to connect them to appropriate game theoretic concepts given a real world situation.
CO4:Identify some applications that need aspects of Bayesian Games.
CO5:Implement a typical Virtual Business scenario using Game theory.
LABORATORY EXERCISES:
1. Prisoner’s dilemma
2. Pure Strategy Nash Equilibrium
3. Extensive Form – Graphs and Trees, Game Trees
4. Strategic Form – Elimination of dominant strategy
5. Minimax theorem, minimax strategies
6. Perfect information games: trees, players assigned to nodes, payoffs, backward Induction, subgame perfect equilibrium,
7. imperfect-information games – Mixed Strategy Nash Equilibrium – Finding mixed-strategy Nash equilibria for zero sum games, mixed versus behavioral strategies.
8. Repeated Games
9. Bayesian Nash equilibrium
30 PERIODS
TOTAL: 60 PERIODS
TEXT BOOKS:
1. M. J. Osborne, An Introduction to Game Theory. Oxford University Press, 2012.
2. M. Machler, E. Solan, S. Zamir, Game Theory, Cambridge University Press, 2013.
3. N. Nisan, T. Roughgarden, E. Tardos, and V. V. Vazirani, Algorithmic Game Theory. Cambridge University Press, 2007.
4. A.Dixit and S. Skeath, Games of Strategy, Second Edition. W W Norton & Co Inc, 2004.
5. YoavShoham, Kevin Leyton-Brown, Multiagent Systems: Algorithmic, Game-Theoretic, and Logical Foundations, Cambridge University Press 2008.
6. Zhu Han, DusitNiyato, WalidSaad, TamerBasar and Are Hjorungnes, “Game Theory in Wireless and Communication Networks”, Cambridge University Press, 2012.
7. Y.Narahari, “Game Theory and Mechanism Design”, IISC Press, World Scientific.
8. William Spaniel, “Game Theory 101: The Complete Textbook”, CreateSpace Independent Publishing, 2011.