Game Theory, Behavior and Applications

1 Course Unit

Game theory studies strategic interactions—situations in which outcomes depend not only on one’s own choices, but also on the choices of others—traditionally under the assumption of perfectly rational agents. This course covers game theory with a focus on behavioral science and real-world applications. It begins by introducing the core concepts, assumptions, methods, and tools of game theory. In addition to formal analysis, the course examines the empirical performance of standard predictions by confronting them with experimental evidence and incorporating behavioral models that account for bounded rationality, limited beliefs, and social norms and preferences. The objective is to understand both the logic of strategic reasoning and the conditions under which observed behavior departs from classical assumptions. Throughout the course, formal tools are treated as instruments for analyzing and structuring real strategic problems. The emphasis is not on formal proofs, but on applying these tools to better understand and gain insight into strategic situations in markets, organizations, politics, and social interactions. Students learn how to model strategic interactions using the tools of game theory and apply them to interactions involving individuals across a variety of settings. Fall or Spring 1 Course Unit