Static Games: Introduction to Game Theory Concepts

This lecture introduces the fundamental concepts of static games within the framework of game theory. It begins with an overview of the course logistics and the importance of game theory in various fields such as economics, political science, and engineering. The instructor emphasizes the significance of understanding multi-agent systems, where multiple self-interested agents interact, leading to potential conflicts and cooperation. The lecture covers the essential elements of a game, including players, actions, information structure, and outcomes. A key focus is on the Prisoner's Dilemma, a classic example used to illustrate the concepts of dominant and dominated strategies. The instructor engages students in activities to identify game components and encourages discussions on rational decision-making. The lecture concludes with an introduction to Nash Equilibrium, highlighting its relevance in predicting outcomes in games. Overall, this session sets the stage for deeper exploration of game theory and its applications in subsequent lectures.