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    Game Theory

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    Sandeep Rai
    This course introduces students to game theory and its applications in international relations. The course is divided into two parts: the first part covers basic concepts of game theory including Nash equilibrium, backward induction, mixed strategies, and coalitional games. The second part applies game theory to model international relations topics such as bargaining, war, diplomacy, arms competition, trade, and international organizations. Students' grades will be based on two tests, a referee report, a course project, and classroom participation.

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    Game Theory

    Uploaded by

    Sandeep Rai
    188 views3 pages
    This course introduces students to game theory and its applications in international relations. The course is divided into two parts: the first part covers basic concepts of game theory including Nash equilibrium, backward induction, mixed strategies, and coalitional games. The second part applies game theory to model international relations topics such as bargaining, war, diplomacy, arms competition, trade, and international organizations. Students' grades will be based on two tests, a referee report, a course project, and classroom participation.

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    International relations

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    Game theory

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    This course introduces students to game theory and its applications in international relations. The course is divided into two parts: the first part covers basic concepts of game theory including Nash equilibrium, backward induction, mixed strategies, and coalitional games. The second part applies game theory to model international relations topics such as bargaining, war, diplomacy, arms competition, trade, and international organizations. Students' grades will be based on two tests, a referee report, a course project, and classroom participation.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    188 views3 pages

    Game Theory

    Uploaded by

    Sandeep Rai
    This course introduces students to game theory and its applications in international relations. The course is divided into two parts: the first part covers basic concepts of game theory including Nash equilibrium, backward induction, mixed strategies, and coalitional games. The second part applies game theory to model international relations topics such as bargaining, war, diplomacy, arms competition, trade, and international organizations. Students' grades will be based on two tests, a referee report, a course project, and classroom participation.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 3

    Game Theory and International Relations

    Instructor: Dmitry Dagaev ([email protected])

    Teaching assistant: Kseniya Chursina ([email protected])

    Course description
    This is an elective course for the 3rd-year students of the joint Higher School of Economics and University
    of London bachelor program in International Relations. It consists of two large parts:

    1) Introduction to Game Theory (fall semester). The main objective of this part of the course is to
    introduce basic game-theoretic concepts and techniques such as dominating and dominated strategies,
    Nash equilibrium, backward induction, mixed strategies, coalitional games, imperfect information. The
    students will learn how to solve simultaneous and sequential games.

    2) Applications of Game Theory to all aspects of International Relations, including war, diplomacy, and
    trade (spring semester). We will apply game theory tools to analyze real-world cases by constructing
    theoretical models.

    Prerequisites
    There are no prerequisites for this course. However, a rigorous work during the course is required.
    Students who attend all classes, participate in discussions, solve home assignments, and complete the
    course projects will likely get a high grade for the course.

    Grading Policy
    The final grade G is calculated as a weighted sum of several components:

    G = 0,2 Test1 + 0,2 Test2 + 0,2 Referee Report + 0,2 Project + 0,2 Classroom Activity

    Tests 1 and 2 will be held in October and December, respectively. Referee report on a scientific paper
    and a course project are due in April. I will announce exact deadlines in the class. Late submissions are
    not possible. Classroom activity mark will be communicated by the instructor at the end of the course.
    This mark is for participation in discussions, home assignments, and quizzes.

    All marks G, Test1, Test2, Referee Report, Project, and Classroom Activity are integer numbers from 0 to
    10. Rounding is according to standard math rules.

    Cheating
    This course implements a zero-tolerance policy for all types of cheating including plagiarism, the use of
    illegal materials at closed-book tests, etc. If a student is caught cheating, he or she immediately gets a 0
    for the corresponding assignment. A report will be submitted to the administration of the Program
    followed by a formal investigation.
    Literature and Online Resources
    First half of this course is covered by the following MOOCs:

    1. (recommended) Open Yale Courses: Game Theory (Econ 159) by Ben Polak

    https://oyc.yale.edu/economics/econ-159

    2. (advanced) Coursera: Game Theory by Matthew Jackson, Kevin Leyton-Brown, Yohav Shoam

    https://www.coursera.org/learn/game-theory-1

    3. (supplementary, in Russian) Coursera: Game Theory by Dmitry Dagaev

    https://www.coursera.org/learn/game-theory

    The following book is closely related to the second half of our course:

    1. Kydd, Andrew H. International relations theory: The game-theoretic approach. Cambridge University
    Press, 2015.

    Additional reading:

    1. Dixit, Avinash, and Barry Nalebuff. The art of strategy. New York: WW, 2008.

    2. Nicholson, Michael. Formal theories in international relations. Vol. 3. CUP Archive, 1990.

    3. Schelling, Thomas C. The strategy of conflict. Harvard university press, 1980.

    4. Schelling, Thomas C. Arms and influence: With a new preface and afterword. Yale University Press,
    2008.

    5. Slantchev, Branislav L. Military threats: the costs of coercion and the price of peace. Cambridge
    University Press, 2011.

    6. Wagner, R. Harrison. War and the state: The theory of international politics. University of Michigan
    Press, 2010.

    Topics
    Part I. Introduction to Game Theory

    Week 1. Strategic interactions

    Simultaneous games

    Week 2. Dominating and dominated strategies

    Weeks 3 and 4. Nash Equilibrium

    Week 5. Mixed strategies


    Sequential games

    Week 6. Backward induction

    Week 7. Subgame Perfect Nash Equilibrium

    Weeks 8 and 9. Games with imperfect information

    Week 10. Repeated games

    Other topics

    Week 11. Coalitional games

    Week 12. Marriage market

    Part II. Game Theory and International Relations

    Weeks 13 and 14. Bargaining games. The Rubinstein model. International bargaining and conflict

    (Kydd, Chapter 4)

    Week 15. Power change and war. Preventive war

    (Kydd, Chapter 5)

    Week 16. Private information and war. The problem of mistrust

    (Kydd, Chapter 6)

    Week 17. Arms competition

    (Kydd, Chapter 7)

    Weeks 18 and 19. Signaling games and Diplomacy

    (Kydd, Chapter 9)

    Week 20. Domestic politics and international relations

    (Kydd, Chapter 11)

    Week 21. Climate change

    Week 22. International organizations: Funding and influence

    Week 23. International organizations: Voting and manipulation

    Weeks 24 and 25. International trade. Competitive advantages and profits from trade. Trade barriers.
    WTO

    Week 26. International sanctions

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