The courses examines the theory of games and its applications in economics: Game trees with perfect information, NIM, combinatorial games. Backward induction. Extensive and strategic (normal) form of a game. Nash equilibrium. Commitment. Zero sum games, mixed strategies. Maxmin strategies. Nash equilibria in mixed strategies. Finding mixed-strategy equilibria for two-person games. Extensive games with information sets, behaviour strategies, perfect recall. The Nash bargaining solution. Multistage bargaining.