Math 486: Game Theory
Fall 2001

Instructor: Ben Davis
Email: bdavis@math.psu.edu
Web: http://www.math.psu.edu/bdavis/
Office: McAllister 322
Office Phone: 863-2036
Office Hours: M 9-10, Tu 11-12, W 9-10, or by appointment.

Text: Peter Morris, Introduction to Game Theory.
Homework: There will be a weekly homework assignment due on Wednesdays.
Exams: There will be a midterm and a final exam.
Grades: Your grade is based on homework and exams. Homework is worth 70%, the midterm is worth 15%, and the final is worth 15%.

Game theory is an applications oriented subject that will, I hope, promote a fun and convivial classroom atmosphere. I will try to deliver clear lectures and be enthusiastic and approachable. For your part, do your best to stay on top of things, and don't hesitate to come visit me in office hours. In my experience, students can learn more in office hours than in any other part of the course.
Homework and Announcements

Due Wed 29 Aug Assignment 1.
Due Wed 5 Sep Assignment 2.
Due Wed 19 Sep Assignment 3
As I mentioned in class, it is possible to give a proof of the existence of optimal mixed strategies using analysis. The advantage of this proof is that it is relatively self-contained. The disadvantage is that the proof doesn't supply a method to find the optimal mixed strategies; it only shows that they must exist. Click here for the proof.
Due Wed 26 Sep Assignment 4
The FAQ page of the Optimization Technology Center contains a wealth of information on linear optimization. In particular, it contains a link to a nice Java applet that implements the simplex method to solve linear programming problems. If you don't already have a favorite LP solver, I recommend you use this Java applet to numerically solve small (7 variables or less) problems.
Due Wed 3 Oct Assignment 5

It has come to my attention that the Java LP solver is hard to interpret.

Here are some hints:

  • You don't need to explicitly enter the constraint that you want a solution where are the variables are positive. The LP solver already knows this.
  • After you enter your objective function and the constraints, you get a new window with lots of colored boxes. Just click the "Do A Full Iterate" button at the bottom of the screen until the message

    You've Done It!
    You've Solved It!


    appears in the message panel at the bottom of the screen. If you get the message

    The problem is unbounded.

    it probably means that either you forgot the preliminary step of adding a constant to the entries of the payoff matrix to get a new payoff matrix where all the payoffs are positive, or you forgot to set the LP solver to "Maximize" or "Minimize" the objective function as appropriate; this option is available as a pulldown menu on the panel where you enter your linear program.
  • The "Current Objective Value" will appear just above the message panel. This is the maximum value of the objective function, and is the number we called "w" in lecture.
  • The values of some of the variables will appear in the purple box on the lefthand side of the screen. The values of all other variables are zero.
  • The program will generate extra "slack" variables; for example, if you had four variables, x1,x2,x3,and x4, then the program will generate four slack variables x5,x6,x7,x8. The values of those slack variables might appear in the purple box. Just ignore them. They are important for doing the simplex method, but they aren't part of the final solution.

Midterm Info

The math 486 midterm will be in-class on Fri Oct 12. It will focus on basic concepts and computations, covering the lectures through 2 player zero-sum games, and the homeworks through the one due Wed 3 Oct. It will be a pencil-and-paper test with no recourse to the book, notes, calculators, computers, etc.
Due Fri Oct 12 Assignment 6.

Midterm Solution

Here is the midterm solution.

The Game of Hex

Here is a blank Hex board.
Due Fri Oct 19 Assignment 7.

Change in Assignment 8

Problem #3 on Assignment 8 has been moved to Assignment 9. Only do Problems #1 and #2 on Assignment 8.

Due Fri Oct 26 Assignment 8.

The relevant sections of Binmore for this assignment are 2.1 and 2.2 for lotteries, 3.1 for preferences, 3.2 for utility functions, and 3.4 for risk aversion, neutrality, etc. Binmore is on 2 hour reserve in the math library on the ground floor of McAllister.


Due date changed.

Due Wed Nov 7 Assignment 9.

The final exam will be in-class on Mon Dec 3


Due Wed Nov 14 Assignment 10.
Due Wed Nov 21 Assignment 11.
Lecture notes of Fri Nov 16 through Wed Nov 21.
Due Mon Dec 3 Assignment 12.