Strategic interactions, Nash equilibria, mechanism design.
Analyzes mathematical models of strategic interaction. Normal-form games are represented by payoff matrices \((A, B)\). A Nash Equilibrium is a strategy profile \((s_1^*, s_2^*)\) where \(u_1(s_1^*, s_2^*) \ge u_1(s_1, s_2^*)\) and \(u_2(s_1^*, s_2^*) \ge u_2(s_1^*, s_2)\). Von Neumann's Minimax Theorem for two-player zero-sum games guarantees \(\max_x \min_y x^T A y = \min_y \max_x x^T A y = V\). Models classic dilemmas: Prisoner's Dilemma, Stag Hunt, Battle of the Sexes.
Reference of classic game theory problems.