Game theory is a great mathematical modeling tool for multi-agent decision-making. In game theory, we have players or decision-makers that we assume to be rational agents. it means that they want to maximize their profit or minimize their loss. it seems that game theory is another kind of optimization problem but there is an important difference between them. In most optimization problems, we have a single agent that wants to maximize his profit with consideration of constraints. but in game theory, we are facing multi-agents and decisions of agents, that affect each other. it means that they can’t just find an optimal solution by considering the constraint, they must consider the effect of other agents in their strategy too. and another difference is information structure. With rich information, players could make better decisions and choose better strategies.
The power of game Theory to model a wide variety of situations such as Simultaneous games, Sequential games, Cooperative games, Non-cooperative games, Static games, Dynamic games, Stochastic games, etc., made it applicable to different fields of science like Engineering, Politics, Economics and Computer Science.
In this course, we will introduce the basic definitions of game theory like “Equilibrium” and then focus on real problems that are solved with the game theory approach.
Prerequisite: Basic Engineering Mathematics, MATLAB