Welcome to Game Theory

About this Course

This course provides a brief introduction to game theory. Our main goal is to understand the basic ideas behind the key concepts in game theory, such as equilibrium, rationality, and cooperation. The course uses very little mathematics, and it is ideal for those who are looking for a conceptual introduction to game theory. Business competition, political campaigns, the struggle for existence by animals and plants, and so on, can all be regarded as a kind of “game,” in which individuals try to do their best against others. Game theory provides a general framework to describe and analyze how individuals behave in such “strategic” situations. This course focuses on the key concepts in game theory, and attempts to outline the informal basic ideas that are often hidden behind mathematical definitions. Game theory has been applied to a number of disciplines, including economics, political science, psychology, sociology, biology, and computer science. Therefore, a warm welcome is extended to audiences from all fields who are interested in what game theory is all about.

100% online courses

Start instantly and learn at your own schedule.

Beginner Level

Approx. 11 hours to complete

Suggested: 3-4 hours/week

English

Subtitles: English

100% online courses

Start instantly and learn at your own schedule.

Beginner Level

Approx. 11 hours to complete

Suggested: 3-4 hours/week

English

Subtitles: English

Syllabus - What you will learn from this course

1

Section

3 hours to complete

Why Do We Need Game Theory, and What Does it Tell Us?

Is it possible to analyze a wide variety of social and economic problems using a unified framework? In the first module, we address this question. We will see that the concept of rational decision making is useful, but it is not quite sufficient to provide governing principles. Motivated examples and some history of game theory will be provided. You will also be asked to play a simple card game to see how it feels to make your decisions strategically....

12 videos (Total 91 min), 4 readings, 4 quizzes

12 videos

Course Preview1m

1-1 What is Game Theory? 8m

1-2 Modelling Social Problems as a "Game" 12m

1-3 In Search for the Governing Principle10m

1-4 Concerns About a Mathematical Theory of Human Behavior 7m

1-5 Let's Play a Game 6m

Card Game Tutorial (No Audio)2m

1-6 John Nash Discovered the Governing Principle 6m

1-7 Nash Equilibrium9m

1-8 Traffic Game in Reality 7m

1-9 Location Game 6m

1-10 Policies of Two Parties 10m

4 readings

Course Description10m

Syllabus10m

Card Game Challenge Instruction10m

(Supplementary Reading Material) Convergence to Nash Equilibrium in the Traffic Game10m

4 practice exercises

Practice Quiz 1.12m

Practice Quiz 1.24m

Practice Quiz 1.32m

Graded Quiz 114m

2

Section

2 hours to complete

Understanding Nash equilibrium

The basic solution concept of game theory is Nash equilibrium. In Module 2, we try to understand this central concept through various examples and ask the following crucial question: how do players come to play a Nash equilibrium?...

10 videos (Total 89 min), 4 quizzes

10 videos

2-1 Nash Equilibrium and the Prisoner’s Dilemma 10m

2-2 Coordination Game and Self-Fulfilling Prophecy 9m

2-3 Market Competition 11m

2-4 Why Do People Come to Play Nash Equilibrium? Part I7m

2-5 Why Do People Come to Play Nash Equilibrium? Part II 7m

2-6 Why Do People Come to Play Nash Equilibrium? Part III 7m

2-7 Stylized Facts and Nash Equilibrium 5m

2-8 Make Yourself Unpredictable: Mixed Strategy Equilibrium 7m

2-9 Sports Games and Game Theory 10m

2-10 Nash Equilibrium Exists in All Games 11m

4 practice exercises

Practice Quiz 2.14m

Practice Quiz 2.24m

Practice Quiz 2.34m

Graded Quiz 214m

3

Section

2 hours to complete

Rationality, Knowledge, and Evolution in Games

In Module 3, we will dig deeper into the relationship between rationality and Nash equilibrium. We will consider the whole spectrum of possible intellectual capacities of players, spanning the range from unlimited ability for sophisticated reasoning to absolute zero intelligence. In the end, you will see that Nash equilibrium can emerge under a fairly wide range of intellectual capacities of players....

9 videos (Total 94 min), 1 reading, 4 quizzes

9 videos

3-1 Digression: The Card Game Revisited 11m

3-2 Digression: How You Played the Card Game and Addressing the Concerns about Game Theory15m

3-3 “Payoffs” in a Game: What Exactly Are Those Numbers? 9m

3-4 What Does it Mean That a Player is Rational? 6m

3-5 Domination: Strategies That Are “Obviously Good or Bad”10m

3-6 Common Knowledge of Rationality 10m

3-7 Low Rationality: What Happens if Players Are Not Very Smart?7m

3-8 Game Theory Under Zero-Intelligence: Biological Evolution 10m

3-9 Fig Wasps Play a Nash Equilibrium 11m

1 readings

Aggregated Result of the Card Game Challenge10m

4 practice exercises

Practice Quiz 3.12m

Practice Quiz 3.24m

Practice Quiz 3.34m

Graded Quiz 314m

4

Section

3 hours to complete

Sustaining Cooperation

The final module is devoted to the most important and most general message of game theory: rational behavior quite often leads to a socially undesirable outcome. We will first try to understand the basic reason for this, and then see how this insight of game theory has made fundamental impacts in the natural and social sciences. Finally, we will learn some general methods to overcome this problem....

11 videos (Total 123 min), 1 reading, 4 quizzes

11 videos

4-1 Group Rationality and The Rationality of Individuals10m

4-2 Why is Group Rationality Different From Rationality of Individuals? 10m

4-3 Group Rationality vs. Rationality of Individuals in Biological Evolution 11m

4-4 Group Rationality vs. Rationality of Individuals in Social Thought 11m

4-5 How to Enforce Socially Desirable Outcomes13m

4-6 Cooperation of gas Stations in Long-Term Relationship Part I: Need For Cooperation 12m

4-7 Cooperation of Gas Stations in Long-Term Relationship Part II: Mechanism of Cooperation11m

4-8 Reputation and Brand Name10m

4-9 Cooperation in Loosely Knit Organization14m

4-10 Summary of the Course 13m

Final Message4m

1 readings

(Supplementary Reading Material) Why People Discount Future Payoff?10m

4 practice exercises

Practice Quiz 4.12m

Practice Quiz 4.22m

Practice Quiz 4.32m

Graded Quiz 414m

Frequently Asked Questions

When will I have access to the lectures and assignments?
Once you enroll for a Certificate, you’ll have access to all videos, quizzes, and programming assignments (if applicable). Peer review assignments can only be submitted and reviewed once your session has begun. If you choose to explore the course without purchasing, you may not be able to access certain assignments.
What will I get if I pay for this course?
If you pay for this course, you will have access to all of the features and content you need to earn a Course Certificate. If you complete the course successfully, your electronic Certificate will be added to your Accomplishments page - from there, you can print your Certificate or add it to your LinkedIn profile. Note that the Course Certificate does not represent official academic credit from the partner institution offering the course.
What is the refund policy?
Is financial aid available?
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Welcome to Game Theory