Linear Optimization & Game Theory - MAT00050H
- Department: Mathematics
- Credit value: 10 credits
- Credit level: H
- Academic year of delivery: 2022-23
Related modules
Module will run
| Occurrence | Teaching period |
|---|---|
| A | Spring Term 2022-23 |
Module aims
The first part of the module provides students with knowledge and skills to solve a wide variety of
linear optimisation problems that are commonly encountered in operations research, finance and
economics. The theory of linear optimisation will be discussed together with solution methods, such as
the simplex method. Students are given the opportunity to solve and analyse realistic, though
simplified, models using widely-used spreadsheet software.
The second part of the module is an introduction to the theory of games, with a focus on those
concepts that have a close link with linear optimization. Topics to be discussed include Nash equilibria
in strategic-form games and the core of coalition-form games.
Throughout, an emphasis is placed on modelling realistic situations from areas like operations
research, finance, and economics. In addition, attention will be paid to the reporting of the analysis of
such models in the business context.
Module learning outcomes
After successful completion, the student is able to
Linear optimisation
- State and describe the basic terminology and results concerning linear optimisation.
- Describe the basic simplex method and use it to solve linear programs.
- State and describe the fundamental and duality theorems.
Game theory
- Describe the basic terminology concerning strategic-form and coalitional games.
- State and describe the Nash theorem, and compute Nash equilibria in strategic-form games.
- Compute Core allocations in coalitional games.
Academic and graduate skills
- Formulate real-world problems in mathematical terms, solve these using appropriate methods, and interpret the solutions in terms of the original problems.
- Critically assess mathematical theories.
Module content
The first few lectures are shared with the M-level version. During Weeks 5 and 6 this module shows (via videoed lectures) how to use Excel (or similar) to implement the algorithms computationally, whilst the M-level version of this module continue with lectures on the theoretical development and proofs. In Week 9 and 10 there is a similar divergence between the two modules, where students on this module learn about coalitional games, whilst the M-level students continue the lectures with more theoretical material, in particular a proof of the Nash theorem.
Indicative assessment
| Task | % of module mark |
|---|---|
| Closed/in-person Exam (Centrally scheduled) | 100 |
Special assessment rules
None
Indicative reassessment
| Task | % of module mark |
|---|---|
| Closed/in-person Exam (Centrally scheduled) | 100 |
Module feedback
|
Indicative reading
- Lecture notes
- Luenberger, D.G. and Y. Ye (2008), Linear and Non-Linear Programming, 3 rd edition, Springer.
- Maschler, M., E. Solan, and S. Zamir (2020), Game Theory, 2 nd edition, Cambridge University Press.
- Osborne, M. and A. Rubinstein (1994), A Course in Game Theory, MIT Press.