Economic Applications of Game Theory
MIT OpenCourseWare offers this introduction to game theory, the mathematical study of strategic interaction. The course builds the core toolkit, normal form and extensive form games, Nash equilibrium, dominant strategies, backward induction, and repeated games, then applies it to real economic settings: cartel collusion, political competition and voting, bargaining, auctions, and evolutionary dynamics. Materials include lecture notes, problem sets with solutions, and exam materials covering topics such as mixed strategies, incomplete information, and mechanism design. The structure moves from simple simultaneous-move games like the prisoner's dilemma toward richer models of negotiation and market behavior, showing how the same equilibrium concepts explain a chess opening and a Federal Reserve auction alike. As with other MIT OCW offerings, all course materials are free to access online under a Creative Commons license, with no certificate offered. It suits students with some background in calculus and probability who want a rigorous, self-contained treatment of strategic decision-making rather than a qualitative survey.