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Regular version of the site

Game Theory

2020/2021
Academic Year
ENG
Instruction in English
4
ECTS credits
Course type:
Elective course
When:
3 year, 3, 4 module

Instructor

Course Syllabus

Abstract

The only prerequisite for the course is the basic knowledge of probability theory and optimization theory. Both topics are treated in the ICEF BSc mandatory courses of the first two and a half years. The course endows students with the game theory techniques used in strategic and economic consultancy, and in institutions that operate in the regulations of markets.
Learning Objectives

Learning Objectives

  • to acquire the game theoretical tools most widespread in economic applications
  • to understand their theoretical motivations and underlying assumptions in terms of players’ strategic reasoning
Expected Learning Outcomes

Expected Learning Outcomes

  • outline and apply the fundamental principles of strategic thinking
  • analyze the role of information in a competitive environment
  • analyze the role of timing of decisions and foresightedness in a dynamic environment
  • analyze the interplay between information and dynamic decision making
Course Contents

Course Contents

  • Simultaneous games with complete information
    Best replies, dominance, rationalizability, iterated dominance, nash equilibrium, mixed eq., correlated eq. Main application: oligopolies
  • Simultaneous games with incomplete information
    Ex-ante strategic form, interim strategic form, bayesian games, bayesian equilibrium. Main application: auctions, juries.
  • Dynamic games with complete information
    Perfect information, backward and forward induction, observable actions, subgame perfect equilibrium, repeated games. Main application: collusion, bargaining.
  • Dynamic games with incomplete information
    Bayesian updating, perfect bayesian eq. Main application: signaling games, cheap talk games, persuasion.
Assessment Elements

Assessment Elements

  • non-blocking Test 1
  • non-blocking Test 2
  • non-blocking Final Exam
Interim Assessment

Interim Assessment

  • Interim assessment (4 module)
    0.5 * Final Exam + 0.25 * Test 1 + 0.25 * Test 2
Bibliography

Bibliography

Recommended Core Bibliography

  • Gura, E.-Y., & Maschler, M. (2008). Insights Into Game Theory : An Alternative Mathematical Experience. Cambridge, UK: Cambridge University Press. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=259184
  • Martin J Osborne, & Ariel Rubinstein. (2009). A Course in Game Theory. Levine’s Bibliography. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsrep&AN=edsrep.p.cla.levrem.814577000000000225

Recommended Additional Bibliography

  • An introduction to game theory, Osborne, M. J., 2009