Duration: 3 hours for 13 weeks [ECTS: 6]

Course Outline

This course provides an introduction to game theory and focuses on the discussion of basic game theoretic models that are important in analysing interactive decision making. The course will focus on the presentation of the methodology for analysing the strategic aspects of games regarding situations of conflict and situations of cooperation. The course will focus on certain situations and games played in class with examples drawn from economics, politics, big enterprises and the like. The course outline is as follows:

1. Introduction to game theory fundamental terms and ideas
2. Two person games
3. Nash equilibrium
4. Duopoly strategies and prices
5. Mixed strategy Nash equilibria
6. Multi-person games
7. Sequential games
8. Elements of co-operative games
9. Uncertainty and asymmetric information. Adverse selection and moral hazard.

Learning Outcomes

By the end of the semester, the students should be able to:

• Understand concepts such as Nash equilibrium, dominance, backward induction, credibility and the like
• Comprehend game theory techniques
• Use game theory models to formulate practical problems such as the ones taught during lectures
• Critically analyse the different solutions of various theoretical and practical games