Game Theory

Uploaded by mlClassStaff on 07.11.2011

One, two, three.
One, two, three.
One, two, three.
Oh, hi.
My name is Yoav Shoham.

I am a professor of computer science here at Stanford.
My area is artificial intelligence,
logic, game theory, electronic commerce.
And I'd like to introduce my friend, Matt.
Hi. I'm Matthew Jackson.
I'm a professor of economics here
at Stanford University and we're
here. My interests include
game theory, political economy
and the analysis of social and
economic networks and we are
here to tell you about an exciting
new course that will be online, on game theory.
And in terms of
the coverage of this
game theory course, it
includes the games like we were just playing, rock paper scissors.
Includes parlor games like Go, Chess, etc.
But it also includes a number
of really important examples of how people behave in the world today.
And it covers basically the mathematics
of rational interaction and also irrational interaction.
So things like understanding how people
will behave in an auction,
how we understand how the
markets like the New York Stock
Exchange behave, how do
political campaigns work, how
do countries decide when to go to war.
So, a whole series of very important applications.
And that's part of the
reason it's become such an important
methodology in economics.
Yoav, why is a computer scientists interested in game theory?
Oh, I mean, today the interest
in game theory in computer science is intense.
And after all, how
would we begin to analyze eBay
or Peer to
Peer networks or keyword auctions
on Google, if
we didn't muddle the rationality
and self interest of players, and
so it comes very naturally to us now.
So, let me tell you a little bit about the class and it's structure.
So, the course will have
weekly lectures and
the lectures will be divided into
roughly 10-minute sections where
you can answer some questions between the different sections.
Those will be graded
online and in real time,
so you'll get feedback about those.
There will also be a final exam for the course.
In terms of the subject matter,
we'll start by covering how you
represent games, players, strategies.
We'll talk about the normal form, which is the canonical representation
of the game.
We will talk about extensive form games
which allow for dynamics and for people to react to each other.
We will talk about
situations where there might be incomplete information.
So, how did you bid at an
auction when you're bidding
against somebody who might have different information from you?
We will talk about games
over time, repeated games over time.
So there's a whole series of the
basic structures of games
and analysis that we'll cover.
And there will also be a question
board that you can interact with
other students through so if
you have questions about subject matter and so forth, you can get answered.
I think that, in
terms of prerequisites, we're going
to assume that people are familiar
with basic calculus and also
have some knowledge of
probability so that you'll
know what, for instance, a conditional
probability is, but we're
not going to assume any specific knowledge beyond that.
So, it should be an exciting course.
Very exciting.
Really the first time such a
course as game theory
has been taught at such a grand
scale really aimed at
a very broad audience, not
just specialists in economics
or in computer science, but really
anybody interested in strategic interaction
with who
is willing to embrace a basic mathematical approach.
Very exciting. Probably also
a little challenging given the
broad interdisciplinary nature,
in fact, you and I
may find ourselves disagreeing at times.
How are we gonna handle that?
Can we agree to disagree?
We'll find out.
So where were we, professor?