Bachelor
2024/2025
Game Theory
Type:
Compulsory course (Economic Analysis)
Area of studies:
Economics
Delivered by:
Undergraduate Programmes Curriculum Support
Where:
Faculty of Economic Sciences
When:
3 year, 4 module
Mode of studies:
offline
Open to:
students of one campus
Instructors:
Marina Sandomirskaia
Language:
English
ECTS credits:
3
Course Syllabus
Abstract
Game theory is a mathematical language of modern economic and social science. Any time a model involves conflict of interests, game theory is needed, since it is the study of strategic decision making. Game theory has numerous applications including economic theory, political science, evolutionary biology, computer science, etc. This course covers the non-cooperative and cooperative game theory, bargaining theory, signaling, imperfect information analysis, as well as giving insights into some of its present-day applications. The course presents main ideas and techniques of game-theoretic analysis. The aim is to teach students to use game theoretic approach in modeling of real-life problem and to think strategically. Success with this course gives edge both in deeper understanding of human behavior and in tackling business problems.
Learning Objectives
- Student should obtain the strategic intuition about the situations that can be considered as games.
- Student should know and apply the main solutions concepts to standard classes of cooperative and noncooperative games.
- Student should make practical and reasonable recommendations and predictions of the behavior of strategical economic agents.
Expected Learning Outcomes
- calculate Nash equilibria in pure strategies in simultaneous-move games
- Understanding Nash Equilibrium in pure strategies.
- A student should solve the simplest cooperative games, should learn the main solution concepts and their differences.
- A student should find Nash equilibrium in mixed strategies in games 2x2 and 2xN
- A student should solve dynamic games with complete information and find Nash equilibria and SPNE
- A student should learn the notion of types and calculate the equilibrium profile in Bayesian games
- A student should analyze dynamic games, know the notion of information set, beliefs, can find WSE and check if it is SSE
- A student should model the dynamic game as signaling and find and interpret its equilibria
- A student should solve different types of two-person bargaining problems
Course Contents
- Static games with complete information: pure strategy
- Static games with complete information: mixed strategy
- Dynamic Games of Complete Information
- Bayesian games: Games with incomplete information
- Dynamic games with incomplete information
- Signaling games
- Bargaining Problem
- Cooperative games.
Assessment Elements
- Attendance and quizzes
- Homework 1Written homeworks with the sets of problems.
- ExamIncludes all topics of the course.
- Homework 2
Interim Assessment
- 2024/2025 4th module0.2 * Attendance and quizzes + 0.5 * Exam + 0.15 * Homework 1 + 0.15 * Homework 2
Bibliography
Recommended Core Bibliography
- A course in game theory, Osborne, M. J., 1994
- An introduction to game theory, Osborne, M. J., 2009
- Game theory : a multy-leveled approach, Peters, H., 2008
- Game theory : analysis of conflict, Myerson, R. B., 2004
- Game theory, Maschler, M., 2013
- Maschler,Michael, Solan,Eilon, & Zamir,Shmuel. (2013). Game Theory. Cambridge University Press. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsrep&AN=edsrep.b.cup.cbooks.9781107005488
Recommended Additional Bibliography
- Michael Spence. (1973). Job Market Signaling. The Quarterly Journal of Economics, (3), 355. https://doi.org/10.2307/1882010