Recommended Books (Especially Useful for the Exercises)
Dutta, Prajit. Strategies and Games: Theory and Practice. MIT Press, 1999. ISBN: 9780262041690. [Preview with Google Books]
Watson, Joel. Strategy: An Introduction to Game Theory. W.W. Norton & Company, 2007. ISBN: 9780393929348.
Kreps, David. A Course in Microeconomic Theory. Princeton University Press, 1990. ISBN: 9780691042640.
Advanced Readings
These two books are very good but harder than the level at which the course is pitched.
Fudenberg, Drew, and Jean Tirole. Game Theory. MIT Press, 1991. ISBN: 9780262061414. [Preview with Google Books]
Osborne, Martin, and Ariel Rubinstein. A Course in Game Theory. MIT Press, 1994. ISBN: 9780262650403. [Preview with Google Books]
Those who need an easier—and longer—exposition of the topics can read:
Dixit, Avinash, and Susan Sekeath. Games of Strategy. W.W. Norton & Company, 2009. ISBN: 9780393931129.
Textbook
[Gibbons] = Gibbons, Robert. Game Theory for Applied Economists. Princeton University Press, 1992. ISBN: 9780691003955. [Preview with Google Books]
TOPICS  READINGS 

A More Formal Introduction to Games

Extensive Forms and Normal Forms Strategies, Dominant Strategies and Iterative Elimination of Strictly Dominated Strategies. Nash Equilibrium Applications of Nash Equilibrium 
Backward Induction

Analysis of ExtensiveForm Games Bargaining and Negotiations 
Subgame Perfection  [Gibbons] Chapter 2.2. 
Repeated Games  [Gibbons] Chapter 2.3. 
Implicit Cartels  [Gibbons] Chapter 2.3. 
Incomplete Information

Bayesian Nash Equilibirium Applications 
Dynamic Games of Incomplete Information

Perfect Bayesian Nash Equilibrium Signaling Sequential Bargaining Under Asymmetric Information 