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 electricity 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 modeling 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.

(LO1) A student will understand the notion of a strategic game and equilibria, and understand the characteristics of main applications of these concepts;

(LO2) Given a real world situation a student should be able to identify its key strategic aspects and based on these be able to connect them to appropriate game theoretic concepts;

(LO3) A student will understand the key connections and interactions between game theory, computer science and economics;

(LO4) A student will understand the impact of game theory on its contemporary applications, and be able to identify the key such application areas;

(S1) Numeracy/computational skills - Problem solving

(S2) Critical thinking and problem solving - Creative thinking

(S3) Numeracy/computational skills - Reason with numbers/mathematical concepts

Introduction: Making rational choices: what is a game? strategy, preferences, payoffs; basic solution concepts; non-cooperative 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). (4 lectures)

Games with Perfect Information: strategic games (prisoner's dilemma, matching pennies); Nash equilibria: theory and illustrations (Cournot's and Bertrand's models of oligopoly, auctions); information about linear programming; mixed strategy equilibrium; zero-sum games; basic computational issues. (9 lectures)

Extensive Games with Perfect Information: repeated games (prisoner's dilemma); subgame perfect Nash equilibrium; computational issues. (3 lectures)

Mechanism Design: basics; social choice; Vickrey and VCG mechanisms (shortest paths); combinatorial auctions; profit maximization; applica tions in Computer Science. (5 lectures)

Modern Applications of Game Theory: Google's sponsored search; eBay auctions; market equilibria; price of anarchy; prediction markets; reputation systems; electricity trading markets.. (9 lectures)

Teaching Method 1 - Lecture
Description:
Teaching Method 2 - Tutorial
Description:

Due to Covid-19, in 2021/22, one or more of the following delivery methods will be implemented based on the current local conditions.
(a) Hybrid delivery
Teaching Method 1 - Lecture
Description: Mix of on-campus/on-line synchronous/asynchronous sessions
Teaching Method 2 - Tutorial
Description: Mix of on-campus/on-line synchronous/asynchronous sessions

(b) Fully online delivery and assessment
Teaching Method 1 - Lecture
Description: On-line synchronous/asynchronous lectures
Teaching Method 2 - Tutorial
Description: On-line synchronous/asynchronous sessions

(c) Standard on-campus delivery
Teaching Method 1 - Lecture
Description: Mix of on-campus/on-line synchronous/asynchronous sessions
Teaching Method 2 - Tutorial
Description: On-campus synchronous sessions