What Are the Prerequisites for Understanding Game Theory?

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SUMMARY

The discussion outlines the prerequisites for understanding Game Theory, specifically focusing on its applications in economics. Key concepts include game trees with perfect information, backward induction, Nash equilibrium, and mixed strategies. Essential foundational knowledge includes basic probability theory, linear algebra, and an understanding of linear programming. Recommended resources for further study include free texts from UCLA on linear programming and game theory.

PREREQUISITES
  • Basic probability theory
  • Solid knowledge of linear algebra
  • Understanding of linear programming
  • Familiarity with game trees and Nash equilibrium concepts
NEXT STEPS
  • Study "Linear Programming" using the free text from UCLA: LP.pdf
  • Explore "Game Theory" concepts through the UCLA resource: Game Theory Contents
  • Learn about Nash equilibria in mixed strategies and their applications
  • Investigate extensive games with information sets and behavior strategies
USEFUL FOR

Students and professionals in economics, mathematicians, and anyone interested in applying game theory principles to strategic decision-making and economic models.

woundedtiger4
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any prerequisites to cover the following Course content:

The courses examines the theory of games and its applications in economics: Game trees with perfect information, NIM, combinatorial games. Backward induction. Extensive and strategic (normal) form of a game. Nash equilibrium. Commitment. Zero sum games, mixed strategies. Maxmin strategies. Nash equilibria in mixed strategies. Finding mixed-strategy equilibria for two-person games. Extensive games with information sets, behaviour strategies, perfect recall. If time permits: The Nash bargaining solution. Multistage bargaining.

ps. any good text on it?
 
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Sounds similar to a class that I've taken actually. I didn't really see too much advanced prerequisites. Maybe some basic probability theory and solid knowledge of linear algebra. If you can get some understanding of linear programming, that's good too.
Here are some relevant free texts:
http://www.math.ucla.edu/~tom/LP.pdf
http://www.math.ucla.edu/~tom/Game_Theory/Contents.html
 

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