Game Theory from Coursera

Popularized by movies such as "A Beautiful Mind," game theory is the mathematical modeling of strategic interaction among rational (and irrational) agents. Beyond what we call `games' in common language, such as chess, poker, soccer, etc., it includes the modeling of conflict among nations, political campaigns, competition among firms, and trading behavior in markets such as the NYSE. How could you begin to model keyword auctions, and peer to peer file-sharing networks, without accounting for the incentives of the people using them? The course will provide the basics: representing games and strategies, the extensive form (which computer scientists call game trees), Bayesian games (modeling things like auctions), repeated and stochastic games, and more. We'll include a variety of examples including classic games and a few applications.

You can find a full syllabus and description of the course here: http://web.stanford.edu/~jacksonm/GTOC-Syllabus.html

There is also an advanced follow-up course to this one, for people already familiar with game theory: https://www.coursera.org/learn/gametheory2/

You can find an introductory video here: http://web.stanford.edu/~jacksonm/Intro_Networks.mp4

What's inside

Syllabus

Week 1: Introduction and Overview

Introduction, overview, uses of game theory, some applications and examples, and formal definitions of: the normal form, payoffs, strategies, pure strategy Nash equilibrium, dominant strategies

Week 2: Mixed-Strategy Nash Equilibrium

pure and mixed strategy Nash equilibria

Week 3: Alternate Solution Concepts

Iterative removal of strictly dominated strategies, minimax strategies and the minimax theorem for zero-sum game, correlated equilibria

Week 4: Extensive-Form Games

Perfect information games: trees, players assigned to nodes, payoffs, backward Induction, subgame perfect equilibrium, introduction to imperfect-information games, mixed versus behavioral strategies.

Week 5: Repeated Games

Repeated prisoners dilemma, finite and infinite repeated games, limited-average versus future-discounted reward, folk theorems, stochastic games and learning.

Week 6: Bayesian Games

General definitions, ex ante/interim Bayesian Nash equilibrium.

Week 7: Coalitional Games

Transferable utility cooperative games, Shapley value, Core, applications.

Week 8: Final Exam

The description goes here

Good to know

Know what's good

, what to watch for

, and possible dealbreakers

Intends to provide a solid mathematical foundation in game theory

Taught by experts with academic publishing records in game theory

Examines real-world examples that highlight game theory principles

Employs a combination of videos, readings, and interactive materials

Offers a comprehensive overview of the fundamental concepts of discrete game theory

Suitable for learners with a strong foundation in microeconomics and basic probability

Reviews summary

Game theory: a mixed review

Learners say that Game Theory is a computer science theory course with engaging, formal mathematical lectures. The difficulty increases throughout the course, and students with minimal math and probability backgrounds may struggle. While some appreciate the interesting material, others find the lectures hard to follow and the presenters lacking. Despite mixed reviews on the instructors, students agree that Professor Jackson is top-notch.

Professor Jackson is highly praised

"Professor Jackson was top notch"

"The other presenters just did not measure up."

"With the exception of Professor Jackson they have a very limited understanding of how to present new material to adult learners."

Mixed opinions on the instructors

"I mention this because there are no prerequisites required for the class."

"I really wanted to like this class but found the variation in the lecture styles between the three prof's distracting."

"Dr. Shoham acted like he wanted to be anywhere but sharing his genius with a dullard like me."

Mixed opinions on the difficulty

"Difficulty increasing at he end of the course, you need some time to get it right."

"The leverage in online courses should allow only the best presenters to teach."

"I was looking forward to this course - a lot. But unfortunately the lectures are very hard to follow for someone with university degrees but no mathematical/game theory background."

Prerequisites are not required

"With no prerequisites required, I jumped right in."

"I mention this because there are no prerequisites required for the class."

"I have no background in economics, but in mathematics."

Activities

Be better prepared before your course. Deepen your understanding during and after it. Supplement your coursework and achieve mastery of the topics covered in Game Theory with these activities:

Review Basic Probability Theory

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Review the basics of probability to prepare for this course

Browse courses on Probability Theory

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Study probability distributions
Review conditional probability and independence
Solve probability problems

Read 'Game Theory: An Introduction' by Roger Myerson

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Supplement your understanding of game theory with a comprehensive textbook

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Read through the book and take notes on key concepts
Work through the practice problems and exercises
Apply the concepts learned to real-world examples

Practice solving game theory puzzles

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Practice solving game theory puzzles to improve your understanding of key concepts

Browse courses on Game Theory

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Solve simple puzzles involving two players
Move on to more complex puzzles involving multiple players
Analyze the strategies and outcomes of different solutions

Show all three activities

Career center

Learners who complete Game Theory will develop knowledge and skills that may be useful to these careers:

Game Designer

Game Designers create video games, board games, and other types of games. They use their knowledge of game theory to create games that are fun and challenging. Game Theory is a fundamental tool for Game Designers because it helps them to understand how players will interact with each other in a game. This can help Game Designers to create games that are more enjoyable and engaging.

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Negotiator

Negotiators work to resolve disputes and reach agreements between parties. They use their knowledge of negotiation theory to develop strategies that are effective and fair. Game Theory is a fundamental tool for Negotiators because it helps them to understand how different parties will interact with each other in a negotiation. This can help Negotiators to develop more effective strategies and to achieve better outcomes.

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Economist

Economists study the production, distribution, and consumption of goods and services. They use their knowledge to help businesses and governments make better decisions. Game Theory is a fundamental tool for Economists because it helps them to understand how people and organizations interact with each other in markets. This can help Economists to make better predictions about the future and to develop more effective policies.

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Political Scientist

Political Scientists study politics and government. They use their knowledge to help understand how political systems work and how they can be improved. Game Theory is a fundamental tool for Political Scientists because it helps them to understand how different political actors will interact with each other in a given situation. This can help Political Scientists to make better predictions about the future and to develop more effective policies.

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Strategy Consultant

Strategy Consultants help businesses and organizations develop and implement strategies to achieve their goals. They use their knowledge of business and strategy to help businesses and organizations make better decisions. Game Theory can be a useful tool for Strategy Consultants because it can help them to understand how different people and organizations will interact with each other in a given situation. This can help Strategy Consultants to develop more effective strategies for their clients.

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Quantitative Analyst

Quantitative Analysts use mathematical and statistical models to analyze data and make predictions. They use their findings to help businesses make better decisions. Game Theory can be a useful tool for Quantitative Analysts because it can help them to understand how different people and organizations will interact with each other in a given situation. This can help Quantitative Analysts to make better predictions and to develop more effective strategies.

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Risk Manager

Risk Managers identify and assess risks to businesses and organizations. They use their findings to help businesses and organizations develop strategies to mitigate risks. Game Theory can be a useful tool for Risk Managers because it can help them to understand how different people and organizations will interact with each other in a given situation. This can help Risk Managers to make better predictions about the future and to develop more effective risk management strategies.

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Statistician

Statisticians collect, analyze, and interpret data. They use their findings to help businesses and organizations make better decisions. Game Theory can be a useful tool for Statisticians because it can help them to understand how different people and organizations will interact with each other in a given situation. This can help Statisticians to make better predictions about the future and to develop more effective strategies.

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Product Manager

Product Managers oversee the development and launch of new products. They use their knowledge of product development and marketing to create products that are successful in the marketplace. Game Theory can be a useful tool for Product Managers because it can help them to understand how consumers will interact with a new product. This can help Product Managers to develop products that are more likely to be successful.

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Financial Analyst

Financial Analysts study the financial markets to make recommendations about investments. They use their knowledge to help individuals and institutions make better financial decisions. Game Theory can be a useful tool for Financial Analysts because it can help them to understand how different investors will interact with each other in a given situation. This can help Financial Analysts to make better predictions about the future and to develop more effective investment strategies.

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Marketer

Marketers develop and execute marketing campaigns to promote products and services. They use their knowledge of consumer behavior to create campaigns that are effective and persuasive. Game Theory can be a useful tool for Marketers because it can help them to understand how consumers will interact with each other in a given market. This can help Marketers to develop more effective marketing campaigns.

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Software Engineer

Software Engineers design, develop, and maintain software systems. They use their knowledge of computer science to create software that is efficient, reliable, and secure. Game Theory can be a useful tool for Software Engineers because it can help them to understand how different users will interact with a software system. This can help Software Engineers to design and develop software systems that are more user-friendly and effective.

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Researcher

Researchers conduct studies to investigate new ideas and theories. They use their findings to help advance knowledge in a particular field. Game Theory can be a useful tool for Researchers because it can help them to develop models that can be used to predict the behavior of people and organizations. This can help Researchers to conduct more effective studies and to make more accurate predictions.

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Lawyer

Lawyers represent individuals and organizations in legal matters. They use their knowledge of the law to help their clients achieve their goals. Game Theory can be a useful tool for Lawyers because it can help them to understand how different parties will interact with each other in a legal dispute. This can help Lawyers to develop more effective strategies for their clients.

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Data Scientist

Data Scientists are responsible for analyzing data to find trends and patterns. They use their findings to help businesses make better decisions. Game Theory can be a useful tool for Data Scientists because it can help them to understand how different people and organizations will interact with each other in a given situation. This can help Data Scientists to make better predictions about the future and to develop more effective strategies.

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