Yale ECON 159: Game Theory
Contents · 48
- 01-Introduction: Five First Lessons
01-Introduction: Five First LessonsIntroduces game theory as the study of strategic situations and its applications in economics, politics, law, biology, and sports. Covers course activities and video-recording consent.
- 02-Putting Yourselves into Other People's Shoes
02-Putting Yourselves into Other People's ShoesReviews normal-form games and the Prisoners’ Dilemma, illustrating its real-world applications and solutions that change incentives.
- 03-Iterative Deletion and the Median-Voter Theorem
03-Iterative Deletion and the Median-Voter TheoremModels candidates choosing political positions to maximize vote share, using voter distribution, closest-candidate voting, and tie-breaking to analyze dominated strategies.
- 04-Best Responses in Soccer and Business Partnerships
04-Best Responses in Soccer and Business PartnershipsExplains best responses and analyzes the penalty-kick game using scoring probabilities, payoffs, and dominant strategies.
- 05-Nash Equilibrium: Bad Fashion and Bank Runs
05-Nash Equilibrium: Bad Fashion and Bank RunsNash equilibrium’s formal definition, best responses, and motivations, including no regret and self-fulfilling beliefs.
- 06-Nash Equilibrium: Dating and Cournot
06-Nash Equilibrium: Dating and CournotCoordination games, communication and leadership, self-enforcing agreements, strategic complements, and the “Going to the Movies” example.
- 07-Nash Equilibrium: Shopping, Standing and Voting on a Line
07-Nash Equilibrium: Shopping, Standing and Voting on a LineBertrand competition models firms with identical products choosing prices rather than quantities, and compares the resulting market outcomes with Cournot competition.
- 08-Nash Equilibrium: Location, Segregation and Randomization
08-Nash Equilibrium: Location, Segregation and RandomizationHow candidate entry can shift election outcomes, why equilibria need not cluster at the center, and how far candidates can be from the center.
- 09-Mixed Strategies in Theory and Tennis
09-Mixed Strategies in Theory and TennisDefines mixed strategies as probability distributions over pure strategies and explains how to calculate their expected payoffs, using Battle of the Sexes as an example.
- 10-Mixed Strategies in Baseball, Dating and Paying Your Taxes
10-Mixed Strategies in Baseball, Dating and Paying Your TaxesChecks that a proposed mixed-strategy equilibrium is a best response, showing that no pure or mixed deviation improves a player’s payoff.
- 11-Evolutionary Stability: Cooperation, Mutation, and Equilibrium
11-Evolutionary Stability: Cooperation, Mutation, and EquilibriumIntroduces evolutionary game theory, modeling strategies as inherited behaviors and payoffs as genetic fitness, with applications to animal behavior and social sciences. Begins a simplified model of competition within species using symmetric two-player games and random pairings.
- 12-Evolutionary Stability: Social Convention, Aggression, and Cycles
12-Evolutionary Stability: Social Convention, Aggression, and CyclesEvolutionarily stable strategies in a simple game, then driving-side conventions as examples of multiple stable social conventions.
- 13-Sequential Games: Moral Hazard, Incentives, and Hungry Lions
13-Sequential Games: Moral Hazard, Incentives, and Hungry LionsIntroduces a cash-in-a-hat game to explore lender–borrower interactions and strategic decisions about investment, matching, and repayment.
- 14-Backward Induction: Commitment, Spies, and First-Mover Advantages
14-Backward Induction: Commitment, Spies, and First-Mover AdvantagesIntroduces the Stackelberg quantity-competition model, comparing sequential moves with Cournot competition and using backward induction to analyze the follower’s best response.
- 15-Backward Induction: Chess, Strategies, and Credible Threats
15-Backward Induction: Chess, Strategies, and Credible ThreatsExplains Zermelo’s theorem for finite, perfect-information games, showing how players can force a win or tie, and introduces backward induction through examples such as Nim and chess.
- 16-Backward Induction: Reputation and Duels
16-Backward Induction: Reputation and DuelsBackward induction, credible threats, and sequential entry by local competitors facing a monopolist across multiple markets.
- 17-Backward Induction: Ultimatums and Bargaining
17-Backward Induction: Ultimatums and BargainingUltimatum bargaining, backward induction, and how fairness and social preferences shape offer acceptance and rejection.
- 18-Imperfect Information: Information Sets and Sub-Game Perfection
18-Imperfect Information: Information Sets and Sub-Game PerfectionIntroduces information sets and shows how imperfect observation changes a sequential game and the use of backward induction.
- 19-Subgame Perfect Equilibrium: Matchmaking and Strategic Investments
19-Subgame Perfect Equilibrium: Matchmaking and Strategic InvestmentsReviews imperfect information, strategies, subgames, and subgame perfection, then analyzes a sequential game where backward induction competes with safe play if a player may deviate.
- 20-Subgame Perfect Equilibrium: Wars of Attrition
20-Subgame Perfect Equilibrium: Wars of AttritionIntroduces a fight-or-quit game, where players weigh the prize for outlasting an opponent against the cost of mutual fighting.
- 21-Repeated Games: Cooperation vs. the End Game
21-Repeated Games: Cooperation vs. the End GameExplores when repeated interaction can sustain cooperation in the Prisoner’s Dilemma through future rewards and punishments.
- 22-Repeated Games: Cheating, Punishment, and Outsourcing
22-Repeated Games: Cheating, Punishment, and OutsourcingRepeated Prisoner’s Dilemma, credible cooperation and punishment, and subgame-perfect equilibrium in indefinitely repeated relationships.
- 23-Asymmetric Information: Silence, Signaling and Suffering Education
23-Asymmetric Information: Silence, Signaling and Suffering EducationHow firms’ private cost information influences Cournot competition, and why a low-cost firm may reveal its type while a high-cost firm may conceal it.
- 24-Asymmetric Information: Auctions and the Winner's Curse
24-Asymmetric Information: Auctions and the Winner's CurseIntroduces auctions under uncertain bidder valuations, distinguishing common-value and private-value goods, with oil wells and homes as examples.