Programme PGP Term VI Academic Year 2021-22

Course title Game Theory and Applications Area Economics Credits 1.25

Prof. Viswanath Pingali

Course Description & Objectives
Course content: Decision making is an integral part in any manager’s job. This course in game theory aims to provide a series of tools that help with strategic decision making. The under current throughout the entire course is that all the entities in the economy are rational agents. As to how the behaviour changes (under the assumption of rationality) under various circumstances forms the basic skeleton of the course. Along with the economic theory, this course also covers various studies that help understand how agents actually behave in the real world and see if we can apply these insights into human behaviour into business settings. In this context, several readings from behavioural economics also form a part of this course. A traditional course in game theory – a relatively nascent science of only about seventy years or so – is mathematical in nature. Therefore, while some amount of mathematics is inevitable when we discuss game theory, I will concentrate more on intuitive and didactic reasoning and application. Familiarity with basic calculus is assumed.

The course is to educate students on strategic decision making tools

A series of lectures on game theory divided into three modules:
Equilibrium in static context
Equilibrium in dynamic context
Equilibrium under uncertainty