Game Theory & Strategic Interactions [Econ 013]

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The Game Theory and Strategic Interactions [ECON 013] Course for BA (Hons) Economics Semester V, Delhi University has been taught by Mr. Dheeraj Suri. The Video Lectures are based upon the books prescribed by the University of Delhi. The Duration of Video Lectures is approximately 55 Hours.

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Demo Lectures for Game Theory & Strategic Interactions

Course Introduction

Game Theory Introduction

Game Theory Introduction Lecture 1
Game Theory Introduction Lecture 2

Chapter 1 : Nash Equilibrium

Prisoner’s Dilemma, Osborne Ch. 2
Prisoner’s Dilemma Examples, Osborne Ch. 2
Altruistic Preferences, Osborne Ch. 2
Bach or Stravinsky, Osborne Ch. 2
Games with Conflict, Osborne Ch. 2

Previous Year Question Papers

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Demo Quiz

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Game Theory Test #1

1. Please Read the Questions and all the options Carefully, Before Selecting Your Choice.
2. You are not Allowed to edit your answers after submission.
3. The Paper has ten Questions
4. Time Allowed is 10 Minutes.
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1 / 10

Consider the following game with players 1 and 2; payoffs are denoted by (a, b) where a is 1’s payoff and b is 2’s payoff. First, player 1 chooses either U or D. If she plays D, then the game ends and the payoff are (1, 0). If she plays U, then player 2 chooses either U or D. If he plays D, then the game ends and the payoffs are (0, 2). If he plays U, then player 1 again chooses either U or D. The game ends in both cases. If player 1 chooses D, then the payoffs are (4, 0). If player 1 chooses U, then the payoffs are (3, 3). 

2 / 10

Consider the following game. Player 1 moves first and chooses L or R. If she plays R, the game ends and the payoffs are (10, 0). If she plays L, then player 2 moves and chooses either L or R. If he plays R, the game ends and the payoffs are (0, 20). If he plays L, then player 1 moves and chooses L or R. The game ends in both cases. If player 1 chooses L, then the payoffs are (30, 30). If she plays R, then the payoffs are (40, 0). This game

3 / 10

Consider the Game

               L          M         R

U        2, 0      3, 3     0, 0

M        1, -1     0, 0     1, 0

D        4, -4     2, 2     1, 1

where the row's player's payoff is given first, followed by the column player's payoff. which of the following statement's is false

4 / 10

Consider the game

 

U          x, x          z, y

D          y, z          y, y

where the row player's payoff is given first, followed by the column player's payoff. This game has only one Nash equilibrium when

5 / 10

Sania and Saina are bargaining over how to split 10 Rupees. Both claimants simultaneously name shares they would like to have, s1 and s2, where 0 ≤ s1, s2 ≤ 10. If s1 + s2 ≤ 10 then the claimants receive the shares they named; otherwise both receive zero. Find all pure strategy Nash equilibria of this game

6 / 10

Consider the following game:

             L                  R

T        (x, x)        (b, y)

B        (y, b)        (a, a)

Which of the following statements is true when y > x > a > b?

7 / 10

Consider the following two games

Game 1:                                                         Game 2 :

                                Hawk                                                                 Hawk           Dove

Enter                    (-1, 1)                               Enter                        (-1, 1)            (3, 3)

Not Enter           (0, 6)                                Not Enter               (0, 6)             (0, 7)

In every Payoff pair "x, y", x is the payoff of row player and y is the payoff of column player. Analyse these games. These games illustrate that , in a strategic situation

8 / 10

Firm 1 is the potential entrant into a market in which Firm 2 is the incumbent monopolist. Firm 1 moves first and chooses to "Enter" or "Not Enter". If it does "not enter", then Firm 1 gets profit 0 and Firm 2 gets the monopoly profit 10. If Firm 1 "Enters", then Firm 2 chooses to "Fight" or "Not Fight". If Firm 2 "fights" the Firm 1's profit is -2 and Firm 2's profit is 6. If Firm 2 does "not fight", then Firm 1's profit is 2 and Firm 2's profit is 8. Firm 2's strategy of "Fight" can be best interpreted as 

9 / 10

Suppose three players, 1, 2 and 3, use the following procedure to allocate 9 indivisible coins. Player 1 proposes an allocation (x1, x2, x3) where xi is the number of coins given to player i. Players 2 and 3 vote on the proposal, saying either Y (Yes) or N (No). If there are two Y votes, then the proposed allocation is implemented. If there are two N votes, the proposal is rejected. If there is one Y vote  and one N vote, then player 1 gets to vote Y or N. Now, the proposal is accepted if there are two Y votes and rejected if there are two N votes.
If 1’s proposal is rejected, then 2 makes a proposal. Now, only 3 votes Y or N. If 3 votes Y, then 2’s proposal is accepted. If 3 votes N, then the proposal is rejected and the allocation (3, 3, 3) is  implemented.
Assume that, if the expected allocation to be received by a particular player by voting Y or N is identical, then the player votes N.

1’s proposal will be

10 / 10

Suppose three players, 1, 2 and 3, use the following procedure to allocate 9 indivisible coins. Player 1 proposes an allocation (x1, x2, x3) where xi is the number of coins given to player i. Players 2 and 3 vote on the proposal, saying either Y (Yes) or N (No). If there are two Y votes, then the proposed allocation is implemented. If there are two N votes, the proposal is rejected. If there is one Y vote  and one N vote, then player 1 gets to vote Y or N. Now, the proposal is accepted if there are two Y votes and rejected if there are two N votes.
If 1’s proposal is rejected, then 2 makes a proposal. Now, only 3 votes Y or N. If 3 votes Y, then 2’s proposal is accepted. If 3 votes N, then the proposal is rejected and the allocation (3, 3, 3) is  implemented.
Assume that, if the expected allocation to be received by a particular player by voting Y or N is identical, then the player votes N.

If 1’s proposal is rejected and 2 gets to make a proposal, her proposal will be

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Chapter-2-Mixed-Strategy

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Exam Pattern for Game Theory & Strategic Interactions

The Question Paper will be of 90 Marks

â–ºAll units carry equal weightage

â–ºInternal Assessment 30 Marks

â–ºContinuous Assessment 40 Marks

Recommended Readings

â–ºOsborne, M. (2004) : An Introduction to Game Theory (Indian Edition)

â–ºWatson, J. (2013): Strategy: An Introduction to Game Theory, 3rd edition

Course Content of our Video Lectures

Lectures are Strictly as per Latest Syllabus for UGCF

Chapter 0 : Game Theory Introduction

Number Video Lectures : 2

Duration of Video Lectures : 90 Minutes

Topics Covered

â–ºGame Theory Introduction,

â–ºKey Terminologies ,

â–ºTypes of Games,

â–ºRepresentation of Games,

â–ºNash Equilibrium,

Unit I : Complete Information Simultaneous Move Game

Chapter 1 : Nash Equilibria

Number Video Lectures : 11

Duration of Video Lectures : 500 Minutes

Based Upon Chapter 2 Osborne

Topics Covered

â–º1.1 Prisoners Dilemma 01:06:01

â–º1.2 Prisoners Dilemma Examples 00:41:23

â–º1.3 Altruistic Preferences 00:25:21

â–º1.4 Bach or Stravinsky 00:53:40

â–º1.5 Games with Conflict 00:10:46

â–º1.6 Games without Conflict 00:54:43

â–º1.7 Nash Equilibrium 01:15:40

â–º1.8 Nash Equilibrium 00:41:45

â–º1.9 Strict Equilibria 00:25:10

â–º1.10 Contribution to Public Good 00:44:23

â–º1.11 Dominated Actions 00:16:55

Chapter 2 : Mixed Strategies

Number Video Lectures : 7

Duration of Video Lectures : 208 Minutes

Based Upon Chapter 4 & Chapter 11 Watson

Topics Covered

â–ºNotion of Mixed Strategy,

â–ºMixed Strategy Nash Equilibrium ,

â–ºDuopoly with Capacity Constraints,

Unit II : Complete Information Extensive Form Game

Chapter 3 : Extensive Games with Perfect Information

Number Video Lectures : 7

Duration of Video Lectures : 217 Minutes

Based Upon Chapter 5 Osborne

Topics Covered

â–ºExtensive Games with Perfect Information,

â–ºEntry Game, Backward Induction Method,

â–ºStrategies & Outcomes,

â–ºNash Equilibrium of Extensive Game with Perfect Information,

â–ºSubgame Perfect Equilibrium,

â–ºDominated Actions,

Unit III : Topics from Industrial Organization

Chapter 4 : Nash Equilibrium Illustrations

Number Video Lectures : 21

Duration of Video Lectures : 651 Minutes

Based Upon Chapter 3 & Chapter 6 Osborne

Topics Covered

â–ºMeaning of Oligopoly & Duopoly,

â–ºCournot’s Model of Oligopoly,

â–ºBertrand Model of Oligopoly,

â–ºElectoral Competition, Hotelling’s Model of Electoral Competition,

â–ºAuctions,

â–ºThe Ultimatum Game,

â–ºStackelberg’s Model of Duopoly,

Unit IV : Incomplete Information

Chapter 5 : Random Events & Incomplete Information

Number Video Lectures : 5

Duration of Video Lectures : 100 Minutes

Based Upon Chapter 24 Watson

Topics Covered

â–ºRandom Events,

â–ºA Game of Incomplete Information ,

â–ºExtensive Form & Normal Form Representations,

Chapter 6 : Risk and Incentives

Number Video Lectures : 6

Duration of Video Lectures : 151 Minutes

Based Upon Chapter 25 Watson

Topics Covered

â–ºRisk Aversion,

â–ºUtility Function & Risk Premium,

â–ºArrow Pratt Measure of Relative Risk Aversion,

â–ºA Principal-Agent Game,

Chapter 7 : Bayesian Rationalizability

Number Video Lectures : 5

Duration of Video Lectures : 140 Minutes

Based Upon Chapter 26 Watson

Topics Covered

â–ºBayesian Nash Equilibrium,

â–ºBayesian Ratinalizability,

Chapter 8 : Lemons, Auctions & Information Aggregation

Number Video Lectures : 5

Duration of Video Lectures : 90 Minutes

Based Upon Chapter 27 Watson

Topics Covered

â–ºMarkets and Lemons,

â–ºAuctions,

Unit V : Communicating Information

Chapter 9 : Perfect Bayesian Equilibrium

Number Video Lectures : 5

Duration of Video Lectures : 117 Minutes

Based Upon Chapter 28 Watson

Topics Covered

â–ºConditional Beliefs about Types,

â–ºSequantial Rationality,

â–ºConsistency of Beliefs,

Chapter 10 : Job Market Signalling & Reputation

Number Video Lectures : 2

Duration of Video Lectures : 60 Minutes

Based Upon Chapter 29 Watson

Topics Covered

â–ºJobs & School,

â–ºPerfect Bayseian Equilibrium,

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Economics (H) Semester V [ UGCF 2025 ]

Video Lectures, PDF Notes, Mock Tests & Live Doubt Sessions are offered for the following Subjects for BA (Hons) Economics Semester V, Delhi University

â–ºTheory of Public Finance (ECON 061)

â–ºMoney & Banking (ECON 062)

â–ºIntroduction to Comparative Economic Development (ECON 064)

â–ºPrinciples of Microeconomics – II (ECON 027)

â–ºCorporate Finance, Governance & Development (ECON 067)