Teaching
Game
Theory
(Spring 2009)
Understanding how people should and do
make decisions is an important study for a variety of different
disciplines. Economics, sociology, philosophy, and even biology all
attempt to understand the process of making decisions. Some
decisions are made in a context where the outcomes are determined by
a single person's choice and some random events. Other decisions are
more complicated, they involve several different decision-makers all
trying to do the best they can – but the best depends on what the
other's do.
These so-called strategic situation
surround us. Choosing investments, routes to the supermarket, and
whether to honor a promise are all strategic choices and all are
studied by game theory. This set of mathematical techniques attempts
sometimes to predict people's decisions and at other times to justify
them. This course focuses on this modeling. Along the way we will
discuss it's philosophical foundations as well as its varied
applications.