IMG_2512.HEIC

# Algorithmic Game Theory ## What is Game Theory? **Game theory** is the study of mathematical models of strategic interactions among rational agents. It has applications in all fields of social science, as well as in logic, systems science and computer science. ### Classic Example: Prisoner's Di...

# Algorithmic Game Theory ## What is Game Theory? **Game theory** is the study of mathematical models of strategic interactions among rational agents. It has applications in all fields of social science, as well as in logic, systems science and computer science. ### Classic Example: Prisoner's Dilemma | | Prisoner B Stays Silent | Prisoner B Betrays | | :--------------- | :---------------------- | :----------------- | | Prisoner A Stays Silent | Both serve 6 months | A serves 10 years | | Prisoner A Betrays | B serves 10 years | Both serve 5 years | ## What is Algorithmic Game Theory? AGT = Game Theory + Algorithm Design It lies at the intersection of game theory and computer science (algorithms). The goal is to design algorithms for strategic agents so as to achieve certain "good" outcomes. ### Typical Applications - Online advertisement - Spectrum auction - Network routing