Game Theory: Principles and Economic Applications

Economic outcomes are often the result of complex strategic decisions made by multiple agents. Learn the powerful mathematical tools needed to model and predict these interactions accurately. By the end of this course, you will be able to formalize economic scenarios—from market competition to negotiation—as games, analyze the incentives of the players involved, and determine stable outcomes using core principles of game theory. What you'll learn: * Understand the core concepts of rationality, utility, and payoff structures used in game theory modeling. * Analyze simultaneous and sequential games using tools like normal form representation and backward induction. * Master the calculation and interpretation of Nash Equilibrium in both pure and mixed strategies. * Apply concepts of information asymmetry, including signaling and screening, in market scenarios. * Explore foundational applications of mechanism design, such as basic auction theory and bargaining models. This course begins with defining the fundamental components of a game, progressing through static and dynamic models, and culminating in the study of games involving incomplete information and real-world economic applications. This course is designed for absolute beginners interested in economics, decision science, or mathematical modeling. No prior knowledge of advanced mathematics or game theory is required. Start analyzing strategic decisions with clarity and rigor today.