Learning module:
Introduction to game theory and negotiation

This site is a part of the e-learning site in decision making.

This learning module is an introduction to game theory, negotiation and a method to reach Pareto optimal solutions for games. It consists of four parts:
  • The theory part presents the basic concepts in game theory and negotiation analysis. The theory part also presents the jointly improving direction method that can be used to reach one Pareto solution for the game.
  • Example case illustrates a simple negotiation problem.
  • The assignment has two parts a and b. It is to be completed in two person groups. The answers can be written on a given report template.
    1. You develop a game tree for one game. You find analytically a Pareto solution for another game.
    2. You solve the example case by applying the Joint Gains software, which is an implementation of the method of the jointly improving direction method.
  • In the evaluation part you are asked to give feedback about the learning module.
  • If you have any questions, please, do not hesitate send your questions to Ville.Koskinen@hut.fi
The completion of the module is expected to take 3-6 hours.

After completing the module you should have learnt

  • the basic elements in game theory
  • what a negotiation problem is
  • the principles of the jointly improving direction method to reach a Pareto point in a negotiation game
  • how to use the Joint Gains negotiation support system in negotiations
Preparations

Check the system requirements BEFORE proceeding to the assignment.

Theory

Read the following sections in the theory part and answer the related quizzes; log directly in the quiz server:
  1. Game theory
  2. Negotiation analysis
  3. The method of impoving directions
Assignment

  1. Download the report template (rtf), (html) for the assignment.
  2. Solve part a of the assignment.
  3. Read the case description slides.
  4. Complete part b by applying Joint Gains to the case problem.
    The use of Joint Gains is explained in the report template step by step. You should use Joint Gains and write the report simultaneously.
  5. Complete the report and publish it in the A&O learning environment in pdf-format.
Evaluation

Fill in the online questionnaire here. The questionnaire must be filled by both members of the group separately.