**Prerequisite:** Exposure to relevant concepts at undergraduate level and instructor consent

**Prerequisite:**Exposure to relevant concepts at undergraduate level and instructor consent**Contents**

Decision making techniques for systems operating under uncertainty. Multi criteria decision models, Pareto optimality, Goal programming with examples.

Basic concepts of decision theory. Decision under risk with examples: Probability and Bayesian Inference, von-Neumann Morgenstern expected utility theorem, Interpretations of probability; Utility, paradoxes of utility theory, Newcomb's problem.

Dynamic programming, finite state action models, backward induction algorithm, and applications. Multi-agent models and Game Theory, with applications: Prisoner`s Dilemma, zero-sum and non-zero-sum games, static and dynamic games, strategic and extensive form games, Nash Equilibrium, Backward induction, repeated games, games with incomplete information, Bayesian Nash equilibrium, Evolutionary game theory.

**References**

- Martin J. Osborne (2003) An Introduction to Game Theory, Oxford University Press.
- Robert Gibbons (1992) Game Theory for Applied Economists, Princeton University Press
- James N. Webb (2006) Game Theory: Decisions, Interaction and Evolution, Springer.
- Richard Ernest Bellman (2003) Dynamic Programming, Dover Publications.
- Dimitri P. Bertsekas (2005) Dynamic Programming & Optimal Control, 3rd edition, Athena Scientific
- Hamdy. A. Taha (2002) Operations Research: An Introduction, 8th edition, Prentice Hall of India.ISBN: 8120330439
- Wayne L. Winston (2004) Operations Research: Applications and Algorithms, 4th edition, Thomson Learning.ISBN: 8131501906 EAN: 9788131501900
- F. Hillier and G. Lieberman (2005) Introduction to Operations Research, 8th edition, McGraw-HillISBN-10: 0073211141 ISBN-13: 978-0073211145