Game theory - The Mathematics for Conflict Resolution
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Game theory can be broadly classified into cooperative and non cooperative games. In non-cooperative games the key solution concept is the notion of a Nash equilibrium. In cooperative games, the key issue is how to split the cooperative output among the participants of the game. Here one has several solution concepts and one may have to tailor the appropriate solution to the model at hand. The talk will motivate via simple examples to illustrate the solution concepts for both non-cooperative and cooperative games. Some classic examples will be chosen to illustrate the basic ideas, like the value and optimal strategies for zero sum games, and the notions of Nash equilibrium and correlated equilibrium via Cournot models, Prisoner's dilemma and the battle of sexes. For Cooperative games we will introduce the solution concepts like the Shapley value, Core and the nucleolus using some simple examples from Bohm Bawerk's horse market, legal disputes, real state pricing etc.
- R & P Seminar