Noncooperative game theory: rationality, dominance, Nash equilibrium, static games, dynamic games, repeated games, games of incomplete information.

Students can describe what game theory is, how it emerged and where it can be applied. Students understand the problems that arise when going from optimization (singe-player games) to strategic interaction (proper games). They master the methods required to analyze static and dynamic games and are capable of computing and interpreting equilibria in simple games. Students are able to identify game theoretic problems from social and economic life. They can apply learned methods to understand incentives and strategic motives of players.

Since students are regularly asked to present home exercsises during the lecture, attendance is required.

The lectures will be divided into two (roughly) equal parts: in the first part, students present their solution to the home exercise. In the second part the lecturer presents material using powerpoint slides which will be made available to students. At the end of the semester there will be a written exam. The basis for the final exam consists of the powerpoint slides and the exercise sheets.

The final mark consists of three parts: (A) points from comments and and questions during the lecure, (B) home exercises, and (C) final exam. The approximate weighting of the final mark will be 10% A, 20% B and 70% C. The percentage points required for marks 4,3,2, and 1 are 50.1%, 62.5%, 75.0%, and 87.5%. A positive result on the final exam is required to pass.

Basic experience in mathematics and formal reasoning is required.