G601, IO I Eric Rasmusen, erasmuse@indiana 31 August 2006 1- intro, game theory.

1. G601, IO I Eric Rasmusen, erasmuse@indiana.edu 31 August 2006 1- intro, game theory. For one 75-minute session. Focuses on Nash equilibrium, and defintiinos of equilibrium, strategy, profile, etc.

2. Readings 29 August, Tuesday. Game Theory Basics Rasmusen: Preface, Introduction, Chapter 1. Reader 1. Philip Straffin, ``The Prisoner's Dilemma,'' UMAP Journal. 1: 101-103 (1980). Reader 2. Albert Tucker, ``A Two-Person Dilemma,'' unpublished notes (May 1950).

3. Handouts • “Write on an 8x11 Piece of Paper” • HTML Assignment • Syllabus • Cardstock and magic marker

4. Write on an 8x11 Piece of Paper Your name: Eric Rasmusen What you would like me to call you: Professor, Professor Rasmusen Your Department and Status: Bus Econ, Prof. Year You Arrived at IU: 1992 Theory or Empirics? --- Both Country of Origin: USA Other Courses this semester: None Last Econometrics Course: Advanced Microeconometrics (McFadden) Last Game Theory Course: auctions and matching (Milgrom, Roth) Econometrics programs you have used: STATA, Excel

5. Assignments Midterm (30 points). Final (70 points). Problem sets and small "how-to" projects (check-, check, check+) on HTML, on Latex, on presenting data, and on writing up regressions. Performance on these can affect your grade a notch or two. You may work on the problem sets and how-to assignments together. Each person will hand in his own how-to assignment. For the problem sets, however, you *must* turn in your problem sets as one for each two-person group. I want you to talk about the problems together. Groups may talk with other groups, too. You may either form your own group, or email me by Saturday saying you'd prefer a random assignment to a group (this is particularly appropriate if you don't know anybody else in the class). Grades: final 70 points, midterm 30 points, other stuff: +, -, 0, raise or lower 1 or 2 notches.

6. The Reader The readings from The Games and Information Reader are optional, and I may or may not have time to talk about them in class. Most of them are fun and useful, however. Read them next summer if you don't read them this fall. Reading them this fall may be helpful encouragement for you as doctoral students in the middle of taking courses, however, since they point ahead to thesis writing.

7. HTML Assignment for Oncourse Profile Write an HTML webpage with at least the following elements: 1. A picture of yourself 2. A link to a sample of your writing. 3. Contact information 4. The date 5. A link to some webpage 6. A link to the G604 webpage. 7. The web address of your page. 8. Some text boldfaced, some in italics, and some that is centered.

8. PS 1: Due next Tuesday. I will check it off, look at a few, hand out unavailable solutions. HTML Assignment: Due Saturday 5pm. Photos on Thursday. Or bring your own.

9. The Prisoner’s Dilemma Table 1.2

10. Definitions

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16. The Battle of the Sexes

18. Write on an 8x11 Piece of Paper Your name: What you would like me to call you: Your Department and Status: Year You Arrived at IU: Theory or Empirics? Country of Origin: Other Courses this semester: Last Econometrics Course: Last Game Theory Course: Econometrics programs you have used:

19. Course Website A link to the course website http://www.rasmusen.org/g601/0.g601.htm