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

Traffic lights

Read about what's good

what should give you pause

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

Solid foundation in game theory

According to learners, this course provides a solid foundation in the core concepts of game theory. Many students praise the quality of the instructors and their ability to explain complex ideas, noting the lectures are clear and engaging. The course is described as mathematically rigorous, covering fundamental topics like Nash equilibrium, extensive-form games, and Bayesian games in detail. While generally well-received for its depth and academic approach, some reviewers found the material challenging, especially if they lacked a strong mathematical background, suggesting it might be less accessible for complete beginners seeking only intuitive understanding. The assignments are often mentioned as helpful for reinforcing learning, though also sometimes noted as difficult.

Some reviewers desired more real-world cases.

"Could use more practical examples beyond classic games."

"I was hoping for more emphasis on real-world applications in business or politics."

"Mostly theoretical; felt it could benefit from more case studies."

"While the theory is strong, applied examples were somewhat limited."

"Wish there were more connections made to current events or industries."

Course has a strong theoretical math basis.

"This course is quite mathematical and requires a comfort level with proofs and formal notation."

"It provides a rigorous, university-level treatment of game theory."

"If you're looking for a purely intuitive approach, this is not it. It's math-heavy."

"The course delves into the mathematical proofs and formal definitions."

"Assumes some familiarity with basic mathematical concepts and logic."

Homework helps solidify understanding.

"The problem sets were challenging but essential for applying the concepts."

"I found the assignments really helped solidify my understanding."

"Working through the homework problems is crucial for success."

"Assignments were well-designed to test comprehension."

"Although tough, the exercises were key to learning."

Instructors explain complex concepts clearly.

"The lectures are incredibly clear and easy to follow, even for abstract topics."

"The instructors do a fantastic job of breaking down difficult material."

"I appreciate how clearly the concepts were explained in the video lectures."

"Lectures were very clear, and the material was well-structured."

"The explanations in the videos were lucid and easy to grasp."

Thorough coverage of key game theory topics.

"Covers all the fundamental concepts you need for a strong start in game theory."

"The syllabus covers the basics comprehensively."

"It gives a great overview of different types of games and solution concepts."

"I feel I have a good grasp of the core ideas after this course."

"Excellent introduction to Nash equilibrium, extensive form, etc."

Concepts can be difficult, especially for beginners.

"Some parts were quite challenging, particularly the later weeks on Bayesian games."

"I struggled a bit without a strong background in mathematics."

"Requires significant effort and concentration to fully grasp the concepts."

"The material moves at a good pace, but it can feel fast if the concepts are new."

"Definitely not a 'light' course; it requires dedicated study time."

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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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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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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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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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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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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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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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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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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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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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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