Game Theory for Managers
About
While game theory may sound whimsical, managers use it to conduct serious business inside and outside their firms. (Courtesy of Tamás Olajos, stock.xchng. Used with permission.)
Instructor(s)
Prof. David McAdams
MIT Course Number
15.040
As Taught In
Spring 2004
Level
Graduate
Course Features
- Lecture notes
- Assignments: problem sets (no solutions)
- Assignments: written (no examples)
- Exams (no solutions)
Course Highlights
Students use game theory in the interactive games they play against each other both in class and online, as described on the games page. The three team assignments include a real-world application.
Course Description
This half-term course examines the choices that we make which affect others and the choices others make that affect us. Such situations are known as "games" and game-playing, while sounding whimsical, is serious business. Managers frequently play "games" both within the firm and outside it – with competitors, customers, regulators, and even capital markets! The goal of this course is to enhance a student's ability to think strategically in complex, interactive environments. Knowledge of game theory will give students an advantage in such strategic settings. The course is structured around three "themes for acquiring advantage in games": commitment / strategic moves, exploiting hidden information, and limited rationality.