Game Theory: Social Choice, Mechanism Design, and Auctions

How do we design rules that encourage individuals to act honestly and cooperate, even when they are looking out for their own interests? Game theory provides the mathematical framework to solve these complex coordination problems in economics, political science, and digital systems. This written course introduces you to the practical principles of mechanism design, social choice, and auction theory. You will transition from understanding simple strategic games to actively designing systems—such as voting structures and market auctions—that produce desirable collective outcomes. What you'll learn: - Understand the core principles of social choice theory and how different voting systems aggregate individual preferences. - Explore mechanism design to create rules that incentivize truthful and cooperative behavior among participants. - Analyze classic auction formats, including Vickrey auctions, and understand how to design them for optimal efficiency. - Examine Arrow's Impossibility Theorem and the mathematical limits of fair collective decision-making. - Apply algorithmic game theory concepts to modern digital marketplaces and ad-bidding networks. - Solve strategic design problems through structured written scenarios and step-by-step mathematical breakdowns. The course begins with foundational definitions of strategic interactions before guiding you through social choice models, incentive compatibility, and practical auction structures. This course is designed for curious beginners, aspiring economists, and developers interested in strategic design, with no advanced mathematical prerequisites required. Start reading today to master the rules that shape strategic decision-making.