AH2205 Game Theory 7.5 credits

Spelteori

Game Theory is important in many different disciplines, for instance economics and computer science. This course is aimed at fourth year students. As an engineer it is not sufficient only to know and use game theoretic tools to analyse a specific problem, but one may also be expected to use the theory, often by programming an algorithm. Therefore, this course does not only give the theoretical tools, but also gives an introduction to “Computational Game Theory”.

Offering and execution

Course offering missing for current semester as well as for previous and coming semesters

Course information

Content and learning outcomes

Course contents *

The course is divided into part I and part II. In the first part many different concepts will be introduced, including games on normal form, extensive form, incomplete information, static and repeated games, bounded rationality, auctions, mechanism design, evolutionary game theory, Markov games and learning in games. Many different solution concepts will be introduced, and their realism visavi different applications will be assessed.

As a part of the examination, the student will choose a game strategy in different games, and motivate them from a game-theoretic point of view. The outcome of their strategies will be analysed in a game with other students. Part I ends with a written exam, where the student is asked to analyse real world problems using game theoretic tools.

Part II is project based. The students will participate in a game, which changes from year to year. Examples of games include internet auctions, combinatorial auctions, procurement of public pension funds, routing etc. The students should program, in groups, a strategy (or an algorithm) which will participate in a game with the other students’ algorithms. The project will be assessed partly by the performance in the outcome of the game, partly by a written report. To analyse the outcome, given the written reports from other students, is an important part of the project.

Intended learning outcomes *

The student should be able to identify game situations within different disciplines, and analyse these with game theoretic concepts. The student should be able to choose tools and solution concepts for real world game theoretic applications, and also to describe their pros and cons. If applicable, the student should be able to program an algorithm for different applications, such as internet auctions, routing, procurement etc. Finally, the student should be able to aquire new information from the scientific literature and account for for a new solution concept or algorithm, and also to assess the usefulness for a given problem.

Course Disposition

No information inserted

Literature and preparations

Specific prerequisites *

Eligibility for single course sudents:

  • Completed and documented upper secondary education and documented proficiency in Swedish B and English A (or equivalent) and
  • 30 credits in Mathematics or 30 credits in the field of Technical or Natural sciences. 

Recommended prerequisites

  • Completed and documented upper secondary education and documented proficiency in Swedish B and English A (or equivalent) and
  • 30 credits in Mathematics or 30 credits in the field of Technical or Natural sciences. 

Equipment

No information inserted

Literature

Martin J. Osborne, 2004, An Introduction to Game Theory, Oxford University Press

Examination and completion

Grading scale *

A, B, C, D, E, FX, F

Examination *

  • INL1 - Assignment, 1.5 credits, Grading scale: P, F
  • PRO1 - Project, 4.5 credits, Grading scale: A, B, C, D, E, FX, F
  • TEN1 - Examination, 1.5 credits, Grading scale: A, B, C, D, E, FX, F

Based on recommendation from KTH’s coordinator for disabilities, the examiner will decide how to adapt an examination for students with documented disability.

The examiner may apply another examination format when re-examining individual students.

Other requirements for final grade *

Written exam (TEN1; 1,5 cr), Assignments (INL1; 1,5 cr) and Project (PRO1; 4,5 cr)

Opportunity to complete the requirements via supplementary examination

No information inserted

Opportunity to raise an approved grade via renewed examination

No information inserted

Examiner

Anders Karlström

Further information

Course web

Further information about the course can be found on the Course web at the link below. Information on the Course web will later be moved to this site.

Course web AH2205

Offered by

ABE/Systems Analysis and Economics

Main field of study *

No information inserted

Education cycle *

Second cycle

Add-on studies

No information inserted

Contact

Anders Karlström; anders.karlstrom@abe.kth.se

Ethical approach *

  • All members of a group are responsible for the group's work.
  • In any assessment, every student shall honestly disclose any help received and sources used.
  • In an oral assessment, every student shall be able to present and answer questions about the entire assignment and solution.