Maths in economics, finance and society · Solid · Dissertation

Game theory and cooperation: a maths EPQ idea

Why it works as an EPQ

Payoff matrices and equilibria are learnable, and real cases let you judge how far the models explain behaviour.

Scope and difficulty

Solid. Solid. One-shot and repeated prisoner's dilemmas and one real case study.

The maths

Builds on these A Level topics: Probability · Algebra and functions.

You would learn:

• Nash equilibrium
• Repeated games and strategies such as tit-for-tat
• Mixed strategies

Learning maths beyond the course is expected in a maths EPQ, but you must understand and explain everything you use.

One possible plan

1. Model a pricing or arms-race situation as a game.
2. Find the equilibrium and show why it is worse for both.
3. Show how repetition changes the outcome, with a simulation tournament.
4. Test the model on a real case and judge its limits.

Pitfalls

• Payoffs chosen to get the answer you want.
• Ignoring information and trust.

Where to start reading

• Game Theory: A Very Short Introduction (Ken Binmore)
• Search for: Axelrod tournament tit for tat

Prefer books, lecture notes, journal articles and official data to a single website, and record every source as you read (how to reference).

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All maths in economics, finance and society ideas · all 93 ideas

Your EPQ must be your own work. These pages coach: ideas, structure, checklists and planning. Submitting text, proofs, code or analysis written by someone else or by an AI tool as your own is malpractice. How to use help and AI honestly.