Games and Decision Making

Table of Contents

1. Choices and Opportunities
   • Functions
   • The optimization problem
   • First order conditions
   • Optimizing using the Lagrange method
   • Uncertainty and Chance
   • Decision Making Under Uncertainty
2. Decisions and Games
   • Two-person matrix games
   • Strategic form games
   • Applications
   • Solving matrix games with mixed strategies
3. Sequential Decisions
   • Graphs and trees
   • Single-person decisions
   • Uncertainty and single-person decisions
4. Sequential games
   • The structure of sequential games
   • Sequential games with perfect information
   • Sequential games with imperfect information
5. Sequential rationality
   • The market for lemons
   • Beliefs and Strategies
   • Consistency of beliefs
   • Expected payoff
   • Sequential equilibrium
   • Applications -- Signaling games
6. Auctions
   • Auctions with complete information
   • Individual private value auctions
   • English auctions
   • Common-value auctions
7. Bargaining
   • The Nash solution
   • Monotonicity in bargaining
   • The core of a bargaining game
   • Allocation rules: The Shapley value
   • Sequential bargaining
   • Applications of bargaining