Skip to main content

IE 616: Decision Analysis and Game Theory

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


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.



  • 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