Games, Solution Concepts, and Mechanism Design: A Very Short Introduction

Games, Solution Concepts, and Mechanism Design: A Very Short Introduction - Jing Chen

Jing Chen
Massachusetts Institute of Technology; Member, School of Mathematics
November 6, 2012

 

I present some of the very fundamental notions in game theory, with emphasis on their role in the theory of mechanism design and implementation. Examples include (1) normal-form games: Nash equilibrium and full implementation, dominant strategy implementation and combinatorial auctions, revelation principle, undominated strategies and implementation with bounded mechanisms, iterated elimination of dominated strategies; and (2) extensive-form games: subgame perfect equilibrium and virtual implementation, backward induction and forward induction. Some materials may be added or truncated depending on the audience.