Lecture 2 - Fundamentals of Game Theory

02.25

Instructor: Yaodong Yang

Topics Covered

1. Introduction to Game Theory
2. Classification of Games
3. Core Elements of Games
4. Standard Representation of a Game
   • 4.1 Static (Normal-form) Game
     • 4.1.1 Example: The Prisoner’s Dilemma
     • 4.1.2 Example: The Battle of the Sexes
5. Iterated Elimination of Strictly Dominated Strategies
   • 5.1 Example: The Prisoner’s Dilemma
   • 5.2 Method
6. Pure Strategy Nash Equilibrium
   • 6.1 Definition
   • 6.2 Nash Equilibrium vs. IESDS
   • 6.3 Existence of Nash Equilibrium
   • 6.4 Solution
     • 6.4.1 Example: The Prisoner’s Dilemma
     • 6.4.2 Example: The Battle of the Sexes
     • 6.4.3 Example: The Chicken Game