Game Theory

Game theory is the formal study of strategic interaction — what rational agents do when their best move depends on what everyone else is doing, and everyone knows that. You'll build up a toolkit of equilibrium concepts (Nash, subgame perfect, Bayesian) by working through normal-form and extensive-form games, mixed strategies, incomplete information, and repeated play, mostly via problem sets that ask you to solve specific games rather than memorize results. It's the analytical backbone behind industrial organization, mechanism design, political economy, and contract theory, so most upper-level micro electives quietly assume you can already find an equilibrium.