Game Theory: The Study of Strategy and Conflict
Warfare, elections, auctions, labor-management negotiations, inheritance disputes, even divorce—these and many other conflicts can be successfully understood and studied as games. A game, in the parlance of social scientists and mathematicians, is any situation involving two or more participants (players) capable of rationally choosing among a set of possible actions (strategies) that lead to some final result (outcome) of typically unequal value (payoffs) to the players. Game theory is the interdisciplinary study of conflict whose primary goal is the answer to the single, simply-stated, but surprisingly complex question: What is the best way to “play”? Although the principles of game theory have been widely applied throughout the social and natural sciences, its greatest impact has been felt in the fields of economics and political science. This course represents a survey of the basic techniques and principles in the field. Of primary interest will be the applications of the theory to real-world conflicts of historical or current interest. The minimum required preparation for successful study of game theory is one year each of high-school algebra and geometry. No other knowledge of mathematics or social science is presumed.