040293 UK Modelling bounded rationality (MA) (2017W)

Game theory is a science of how to make choices when others are also making choices. Its central solution concept, Nash equilibrium, involves very strong assumptions on the players. They need to be rational, there must be a common belief that all are rational and their beliefs have to coincide with the play. We will give an overview of some alternative concepts for making predictions in games. Part of the material will be learned by reading and discussing research papers.
Topics include:
- Evolution
- Learning
- Beating the average (new research)
Goal: Teach students how to make predictions in strategic settings without using the standard but heroic concept of Nash equilibrium.