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Regular version of the site
Bachelor 2021/2022

Game Theory

Area of studies: Economics
When: 3 year, 3, 4 module
Mode of studies: offline
Open to: students of one campus
Language: English
ECTS credits: 4

Course Syllabus

Abstract

This course provides an overview of the basic concepts in game theory: Nash equilibrium, subgame perfect equilibrium, perfect Bayesian equilibrium and others. The main mathematical apparatus is highly abstract, but this abstractness allows it to be used to study a wide range of phenomena. Game theory provides necessary tools to study all economic models presented in other courses, as any model is a game. To illustrate the applicability of the studied concepts, we are going to play several games during classes using online software.
Learning Objectives

Learning Objectives

  • introduce basic concepts of game theory;
  • demonstrate these concepts using various games;
  • connect studied theoretical concepts to real life
Expected Learning Outcomes

Expected Learning Outcomes

  • identify real life situations where the studied concepts are applicable
  • build theoretical models;
  • understand books and papers that contain economic theories based on studied concepts;
  • critically evaluate theoretical research in economics;
  • solve models with a given setup related to studied concepts
Course Contents

Course Contents

  • Simultaneous games with complete information
    Best replies, dominance, rationalizability, iterated dominance, Nash equilibrium, mixed equilibrium, correlated equilibrium
  • Simultaneous games with incomplete information
    Ex-ante strategic form, interim strategic form, Bayesian games, Bayesian equilibrium.
  • Dynamic games with complete information
    Perfect information, backward and forward induction, observable actions, subgame perfect equilibrium, repeated games.
  • Dynamic games with incomplete information
    Bayesian updating, perfect Bayesian equilibrium.
Assessment Elements

Assessment Elements

  • non-blocking home assignments
  • non-blocking Midterm
  • non-blocking Final Exam
Interim Assessment

Interim Assessment

  • Interim assessment (4 module)
    0.5 * Final Exam + 0.25 * home assignments + 0.25 * Midterm
Bibliography

Bibliography

Recommended Core Bibliography

  • 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

  • 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