Course pre-requisite(s): Basic Mathematics

Course Overview

This course aims to introduce students to the practical application of game theory in business applications, by examining various business and management problems, developing game theory models for these problems, and applying solution concepts
used in game theory.

Learning Outcomes

By the end of this course students should be able to

• describe the usage areas of game theory,
• explain the assumptions of game theory,
• classify games, explain Nash Equilibrium,
• explain the difference of pure and mixed strategies,
• describe zero-sum games, constant-sum games, and non-constant sum games,
• explain saddle-point of the games,
• explain the difference between static and dynamic games,
• explain the dominant strategies.

Course Content

(1) Key ideas, terminology, and assumptions
(2) Classification of Games
(3) Pure Strategy Games and Solutions Methods
(4) Finding Nash Equilibrium and its importance
(5) Zero-sum Games, Constant-Sum Games and Non-Constant Sum Games, Finding Saddle-point for these games
(6) Mixed Strategy Games and Solution Methods
(7) Dynamic Games
(8) Special Game Theory Examples such as Prisoner's Dilemma, Battle of Sexes, Chicken Game etc.
(9) Game Theory Models for Business Problems

Instructional Method

The teaching methods to be used in this course are lectures, question-answer, and discussion techniques. The strategies of the games to be studied in the course will be discussed by students and explanations will be made accordingly by the lecturer.

Required Course Materials

No software will be used for this course. Necessary documents will be shared before the lesson so that students can prepare for the lessons.

Assessment

The oral presentation method will be used as the evaluation method. At the beginning of the summer school, topics will be distributed among the students and a presentation calendar will be planned. In this process, it is aimed to measure the knowledge levels of the students by combining the topics studied in the classes with their own presentation topics.