The problem of interaction among many agents and its impact on decision making is presented. There is an introduction to the basic concepts of game theory and to the different types of games depending on the nature of interaction (static, dynamic or repeated) as well as on the type of information agents have (perfect or imperfect). The main equilibrium concepts are studied (Nash equilibrium, sub game perfect equilibrium and dominated strategies) with applications to social sciences in general and political science in particular: noncompetitive markets, political competition, bilateral bargaining, voting systems, social cooperation, government coalitions and public good provision, among others.
Program:
1. Introduction.
2. Static games: definition, dominated strategies, Nash equilibrium, voting systems, applications.
3. Dynamic games: definition, subgame perfect Nash equilibrium, credibility, voting systems, applications.
4. Bargaining: definition, patience, risk aversion, Coase theorem. Cases.
5. Repeated games: definition, cooperation in non-cooperative environments. Cases.
6. Power indices: definition, computation, applications to Spanish parliaments.