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Math · Intermediate

Game Theory

How should you act when the outcome depends on what others do? Analyse the prisoner's dilemma, find Nash equilibria, learn why randomizing can be optimal, discover how cooperation can evolve between self-interested players, solve games by thinking backwards, and learn how to bid in auctions.

7 lessons~35 min0/7 complete
Start courseHelpful background: Probability
1

Strategic Thinking

Payoffs, dominance and equilibrium.

  1. The Prisoner’s DilemmaWhen self-interest backfires
  2. Nash EquilibriumNo one wants to switch
2

Advanced Strategy

Randomizing, and repeated games.

  1. Mixed StrategiesWhy randomness can be smart
  2. CooperationRepeated games and tit for tat
3

Games in Practice

Moves in sequence, and auctions.

  1. Backward InductionThink from the end
  2. AuctionsHow to bid, and what sellers earn
  3. Hawks & DovesEvolutionarily stable strategies

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