ECON 3801 - Introduction to Game Theory and Strategic Thinking

(crosslisted) COGST 3801
(SSC-AS) (SBA-AG)

Fall. 3 credits. Student option grading.

Forbidden Overlap: due to an overlap in content, students will receive credit for only one course in the following group: ECON 2801, ECON 3801, COGST 3801.
Prerequisite: ECON 1110 or equivalent.

K. Basu.

Some knowledge of game-theory is essential in today’s age of complex decision-making, diplomacy, and corporate strategizing. This course is an introduction to the basic principles of game theory and rational choice. The course is designed for students with an interest in economics, political strategy, moral philosophy, and algorithmic reasoning. Important ideas and concepts, with real-life illustrations, will be discussed. Over the semester students will learn the essential ideas of Nash, Schelling and others, different conceptualizations of equilibrium, such as the Nash equilibrium and subgame perfection, and how they apply to different contexts, such as competition among firms, war, and diplomacy. The course will help us understand everyday phenomena, such as addiction, procrastination and moral dilemmas, and show how reasoning can be a critical input for personal happiness. Students will be introduced to some unresolved paradoxes of rational behavior and encouraged to try to solve them on their own.