# STATISTICS 473 Game Theory

## Spring 2013

Instructor: David Marker
Class Meets: Tu-Th 11:00-12:15 EPASW 2417
Office: 411 SEO
Office Hours: M 2:00-3:00, W 9:30-11:00
phone: (312) 996-3069
e-mail: marker@math.uic.edu
course webpage: http://www.math.uic.edu/~marker/stat473-S13

This webpage will be the primary source for problem sets and course handouts. There will also be a course site on UIC Blackboard where I will post solutions to homework and grade information.

### Text

• Martin J. Osborne, An Introduction to Game Theory, Oxford University Press, New York, Oxford, 2003.

A new book that you might find useful for supplementary reading is
• Steven Tadelis, Game Theory, Princeton University Press, 2013.

### Prerequisites

The formal mathematical prerequisites are minimal, but the course will be fairly rigorous and will require the ability to follow closely reasoned arguments and solve problems. Students should have some familiarity with
• basic calculus--particularly using calculus to find maximums and minimums
• basic probability--expectation, Bayes rule
If you are unsure if you have necessary background, please consult with the instructor.

### Description

Game Theory is the study of mathematical models of strategic decision making with interacting decision makers. This course will introduce the main concepts and tools of the subjects. The course will focus more on concepts and illustrative examples than mathematical theory The topics covered will include:
• Strategic games, mixed strategies, Nash equilibrium, minimax strategies in zero sum games;
• Extensive games of perfect information;
• Bayesian games;
• Extensive games of imperfect information;
• If time permits, additional topics will be chosen based on the interests of the class. Possible additional topics include evolutionary games, repeated games, cooperative games and bargaining.

### Practice Problems and Problem Sets

• For each chapter of the text I will assign a number of "Practice Problems". These problems will not be collected or graded. Solutions to these problems can be found in the author's solutions to selected problems on the author's webpage http://www.economics.utoronto.ca/osborne/igt
• There will be frequent problem sets that will be collected and graded. The two lowest grades will be dropped. Late homework will be accepted only in exceptional circumstances. For full credit problem sets must be written carefully and clearly.
• Here are details on the Optional Project
You may discuss homework problems with other students, but you must write up your solution independently.

There will be two midterm exams and a final. The final grade will be based 15% on the problem sets, each midterm exam will count 25% and the final will count 35%.

Midterm 1: Tu Feb 26
Midterm 2: Th April 11
Final Exam: Monday May 6 10:30

### Problem Sets

Solutions to Problem Sets are posted on the course Blackboard webpage.

### Practice Problems

Recall that solutions to practice problems can be found in the author's Solution Manual
• Chapter 2 16.1, 17.1, 20.1, 31.1, 34.1, 34.3, 37.1, 38.1, 38.2, 47.1, 47.2, 50.1, 51.2
• Chapter 3 58.1, 60.2, 68.1, 68.2, 85.1, 86.2, 87.1
• Chapter 4 101.1, 110.1, 111.1, 114.1, 120.2, 139.1
• Chapter 5 163.1, 168.1, 174.1, 179.3
• Chapter 6 183.1, 183.2, 186.1, 189.1
• Chapter 7 210.2, 227.1, 230.1
• Chapter 9 276.1, 277.1, 282.2, 287.1, 288.1, 294.1
• Chapter 10 318.2
• Chapter 14428.1, 442.1