An introduction to strategic analysis of games on networks
This workshop introduces the basics of non-cooperative game theory with a focus on applications that require consideration of social connections. In effect, this is primarily a workshop about games on networks where the latter as taken as exogenous variables.The workshop is organized in three 1-hour parts as follows:
- Basics of non-cooperative game theory. This part introduces participants to simultaneous and sequential choice models of strategic behavior. Conventional equilibrium notions and practical solution techniques will be reviewed with hands-on exercises.
- Games on networks. This part analyzes the impact of exogenous social structures on simple models of cooperation and coordination.
- Network formation games. This last part provides a high-level overview of the newer economic literature on network formation. Specifically, this part will highlight concepts from cooperative game theory that are foundational to understand network formation.
What you will need
- Optional: a laptop to download handouts with exercises
How to model and analyze networks
- Jackson Mathew Jackson, Matthew (2008), "Representing and Measuring Networks" in Social and Economic Networks. Princeton University Press.
- Overview of economic approaches to network analysis
- For an introduction to (noncooperative) game theory, please see appendix in:
Advanced Game Theory:
- Osborne, Martin J. and Ariel Rubinstein (1994). A course in Game theory. MIT Press. A free electronic copy can be downloaded after registration at http://books.osborne.economics.utoronto.ca.
About the instructor
Armando Razo is Associate Professor of Political Science and a faculty affiliate at the Indiana University Network Institute. His teaching and research interests include comparative analysis of networks and institutions, game-theoretic and computational models of networks and collective action, and political economy of development.