Course on Epistemic Game Theory

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Background

I have developed a course on epistemic game theory, which is suitable for third-year bachelor students, master students, PhD students, and researchers who are interested in game theory. The course in based on the book "Epistemic Game Theory: Reasoning and Choice" which I have written, and which will be published in 2012 by Cambridge University Press.

This full course has grown out of a mini-course on epistemic game theory, which I have given at the following places so far:

bulletMax-Planck Institute at Jena (Germany), Strategic Interaction Group, May 8th and May 9th 2007.
bulletMaastricht University (The Netherlands), May 15th and May 16th 2007.
bulletUniversidad Carlos III de Madrid (Spain), Department of Economics, November 8th and November 9th 2007.
bulletUniversity of Amsterdam (The Netherlands), Institute for Logic, Linguistic, and Computation. February 2008 until April 2008.
bulletLausanne (Switzerland), at the Second Annual Meeting of the Swiss Graduate Society of Logic and Philosophy of Science, June 17th and June 18th 2008.
bulletUniversity of Aarhus (Denmark), Center for Algorithmic Game Theory, April 15th, 16th and 17th 2009. 
bulletErasmus University Rotterdam (The Netherlands), February 1st and 2nd, 2012.

The slides for that mini-course can be downloaded here: Lecture 1   Lecture 2   Lecture 3   Lecture 4

The course has very much benefitted from the people who followed these mini-courses, and provided me with important feedback.

In April and May 2010, I have been teaching the full course for the first time. I have given it as a seven week course at Maastricht University, together with Christian Bach.  This course was open for Master students, PhD students, and researchers. Every week I gave two lectures of two hours, and Christian Bach discussed some exercises every week. During each week we discussed one chapter of the book "Epistemic Game Theory: Reasoning and Choice" , and the last week was reserved for questions and discussions. The lecture slides can  be downloaded below.

In 2011, Christian Bach and I have given the course again at Maastricht University, between April 18th and June 1st, 2011.  That time, we treated all chapters of the book, except chapter 7. So, compared to 2010 we treated two new chapters, namely Chapters 8 and 9, which are about dynamic games.

In the spring of 2012, Christian Bach and I will again give the course in Maastricht, but now with the official title Epistemic Game Theory. The course is open for master students, PhD students and interested researchers. In 2012, we will treat all chapters from the book. In week 1, we combine Chapters 2 and 3.

Contents and lecture slides of the course

Below you can view and download the lecture slides of my course Epistemic Game Theory.

Part I : Standard Beliefs in Static Games

Common belief in rationality   (Based on Chapters 2 and 3 of my book)
What is game theory about
Example: Where to locate my pub
Example: Going to a party
Choosing rationally
Belief hierarchies
Epistemic model
Common belief in rationality
Existence
Algorithm

Simple Belief Hierarchies  (Based on Chapter 4 of my book)
Simple belief hierarchies
Nash equilibrium
Computational method
Belief that Opponents Hold Correct Beliefs
 

Part II : Lexicographic Beliefs in Static Games

Primary belief in the opponent's rationality  (Based on Chapter 5 of my book)
Cautious reasoning about the opponent
Lexicographic beliefs
Belief hierarchies and types
Cautious types
Primary belief in the opponent's rationality
Common full belief in "primary belief in rationality"
Existence
Weakly dominated choices
Algorithm

Respecting the opponent's preferences  (Based on Chapter 6 of my book)
Respecting the opponent's preferences
Common full belief in "respect of preferences"
Existence
Why elimination of choices does not work
Preference restrictions and likelihood orderings
Algorithm

Assuming the opponent's rationality  (Based on Chapter 7 of my book)
Assuming the opponent's rationality
 Common assumption of rationality
Algorithm

Part III: Conditional Beliefs in Dynamic Games

Belief in the opponents' future rationality (Based on Chapter 8 of my book)
Belief revision
Dynamic games
Conditional beliefs
Epistemic model
Common belief in future rationality
Algorithm
Backwards order of elimination
Backward induction

Strong belief in the opponents' rationality (Based on Chapter 9 of my book)
Strong belief in the opponents' rationality
Common strong belief in rationality
Algorithm
Comparison with backward dominance procedure