Economics | Strategic Decisions & Game Theory

About the course

Imagine you and your best friend are deciding between going to a concert or an amusement park for the weekend. The catch? You can’t talk to each other about it. Your enjoyment depends on both of your choices. How do you make your decision? Do you trust your friend to make the same choice as you, or do you try to outsmart each other? 

This simple dilemma introduces us to the intriguing world of game theory. A game, in this context, is any rule-governed situation where the final outcome depends on the actions of more than one person and in today’s complex world, is a basic life skill. The study of game theory has led to numerous breakthroughs in different fields such as economics, political science, and biology. The future applications of game theory are constantly evolving – from improving market efficiency to designing artificial intelligence to understanding social networks, game theory can be seen as a powerful tool for strategic decision-making in different fields.

Strategic Decisions and Game Theory is a live interactive course that offers a comprehensive introduction to the principles of game theory and the art of strategic decision-making. You will explore key concepts and important ideas, including ideas of von Neumann, Nash, Schelling and other contemporary economists with real-life illustrations, in this course. You will study how these ideas apply to real-life situations, such as competition among private corporations, conflict among countries and other everyday phenomena, like how to play Tic-Tac-Toe and Rock-Paper-Scissors to splitting a restaurant bill and preventing your shoes from getting stolen at your local place of worship.

You will learn basics like types of games, strategies, payoffs and equilibrium behaviour and decode the role of information and why who moves when matters in a game. You will deep dive into the ubiquitous nature of game theory and analysis of real scenarios where decisions depend on others’ choices. This would include understanding the role of strategic interactions in shaping our world, especially for global politics, climate change and other similar phenomena.

The course will culminate with a capstone project, where you will work in small groups to formulate and investigate a research question grounded in the game theory concepts covered in class. The project will challenge you to apply theoretical tools to real-world or simulated strategic situations, interpret their findings, and present conclusions clearly and rigorously.

“I’ve gained the ability to differentiate between various categories of games—simultaneous versus sequential, zero-sum versus non-zero-sum—and to evaluate them with tools such as payoff matrices, Nash equilibrium, and backward induction. Case studies, including the Prisoner’s Dilemma and the Tragedy of the Commons, have provided me with insights into how strategic conflict and cooperation manifest in contexts ranging from environmental concerns to global diplomacy.”

– Ahaana, Grade 10, La Martiniere for Girls School

Eligibility

• High school students from India and across the world are eligible to apply.
• Students should be entering or in grades 9-12 as of the programme commencement date.
• Students should be comfortable with written & spoken English, which will be the medium of instruction for the courses.
• Students should have consistent access to the Internet and a computer that aligns with the recommended minimum specifications.
• Students should have a good and consistent academic record.
• Students from all boards can enroll.

Who is this course for?

This course spans diverse disciplines and is tailored for high school students (Grades 9-12) to equip them with knowledge and skills for strategic decision-making. It is well for students interested in studying any field of human behaviour, like Economics-related fields, Psychology, Marketing and Neuroscience. This course provides valuable insights that foster analytical skills applicable across diverse academic paths.

Prerequisites: High proficiency in written & spoken English. You will be required to submit your latest mark sheet in the application form.

What do I take away?

1. Differentiate between strategic and non-strategic interactions.
2. Learn ways to convert a given strategic situation into a game-theoretic problem.
3. Understand the logic of equilibrium play in a game theoretic setting and the possibility of undesirable outcomes in the equilibrium.
4. Practice different types of equilibrium notions used in game theory
5. Discuss application of game theory to economic problems and other global issues like climate change.

Programme Details

 

Week	Lecture Module	Project Module
Week 1	Introduction to Game Theory Understand the fundamental concepts of game theory and the core ideas of how strategic decision-making shapes the world around us. Properties and characteristics of a game Pure & mixed strategy Payoff matrix	History of game theory Differentiate between strategic and non-strategic behaviour by solving problems and analysing situations. Model different strategic scenarios and various settings as games.
Week 2	Simultaneous & sequential move games Examine two primary types of games and the correlation between timing and outcome. Prisoner’s dilemma Game of chicken First mover vs. second mover	Equilibrium in games Explore suboptimal outcomes in different types of games and examples. Solve elementary simultaneous and sequential games to find equilibrium.
Week 3	Equilibrium behaviour Determine stable outcomes in strategic settings by applying the understanding of equilibrium behaviour. Nash equilibrium Subgame perfect Nash equilibrium Competitive vs. cooperative market environments	Strategies of equilibrium ​​Decode notions and assumptions of equilibrium and practice how to find them. Draw connections between equilibrium computation with behavioural economics.
Week 4	Public goods Explore how game theory explains collective action problems, such as the provision of public goods. Tragedy of the Commons Societal outcomes Global issues	Implications of public goods Research on what public goods and common resources. Deconstruct the difficulty of solving these problems and discuss the implications for tackling issues such as pollution and climate change.
	Counselling:  Get a chance to ask questions to the faculty and the mentor, and get their answers and perspective.  You are encouraged to ask questions to the faculty around the following aspects: What are some related fields that can be explored based on this course topic? What are the future trends in the related fields? How can the course learning help the student enhance their college applications?	Mentoring: You are encouraged to ask questions to the mentor around the following aspects: What are some sub-topics to learn/practice beyond the course? What is the scope of the course topic if the student wants to pursue/study it further? What are some personal projects that can be taken up outside of the course based on the knowledge gained in the course?

Capstone Project

You work in small groups to formulate and investigate a research question grounded in the game theory concepts covered in class. The research question must involve strategic interaction between two or more players, be analyzable using models discussed in class, offer insightful implications about real or hypothetical behaviour and be specific enough to allow a clear model and solution. You will collaboratively develop the research question, model, analysis, and presentation, but independently write a report that reflects your individual understanding, contribution, and interpretation.

Faculty

Sudipta Sarangi is a Professor and the Department Head of Economics at Virginia Tech. His research interests range from networks and game theory to development economics and behavioural economics. He is the recipient of several teaching awards at the undergraduate and graduate levels and is a former Ashoka X faculty. He serves on several editorial boards and, most recently, was the recipient of a Fellowship from the French Institutes of Advanced Study.

Grading, assessments, certification and much more

Grading, Assessments & Certification

All Ashoka Horizons courses offer a certificate on satisfactory completion of the course. The components of student assessment are-

• Written assignments – 30%
• Final report (Capstone) – 50% 
• In-class participation and attendance – 20% 

Class participation will be assessed based on your active engagement in live sessions, contributions to discussion forums, and involvement in Teaching Fellow-led activities. 

Achieve More…with Horizons:

• Successful Course Completion Certificate
• Letters of Academic Achievement to the top 3 students based on exceptional performance

*For select students, subject to discretion of the faculty

IT Requirements

This course is administered through an online platform. Students are expected to have a foundational understanding of computer usage, including but not limited to sending emails and conducting Internet searches. Consistent access to the Internet and a computer that aligns with the recommended minimum specifications are also requisite for participation in the course.