Module description
What is the module about?
This second-year module provides students with a theoretical and practical understanding of game theory. Game Theory is the study of strategic interactions between rational decision makers. The module examines optimal individual behaviour in a variety of settings and how this leads to an equilibrium. We cover static games and dynamic games of complete and incomplete information. A good knowledge of mathematics is required as the module is based around solving mathematical models.
Who should do this module?
This module is available to students in BSc Economics as well as BSc Economics & Management. It is aimed at students with a strong economics and mathematics background. This module will be useful if you are considering taking Experimental Economics, Behavioural Economic Theory or plan to go on to further studies in economics after your undergraduate. You are strongly encouraged to take Game Theory if you would like to take Advanced Microeconomics in the third year.
Provisional Lecture Outline
Lecture 1: Introduction to Games and Strategies
Lecture 2: Static Games of Complete Information & Nash Equilibrium
Lecture 3: Applications of Nash Equilibrium
Lecture 4: Mixed Strategies
Lecture 5: Dynamic Games of Complete Information
Lecture 6: Mid-Term Text
Lecture 7: Credibility & Sequential Rationality
Lecture 8: Strategic Bargaining
Lecture 9: Games of Incomplete Information (Bayesian Games)
Lecture 10: Signalling & Cheap Talk
Assessment details
80% Examination
20% Mid-Term Assessment
Teaching pattern
Weekly lecture
Fortnightly tutorial
Suggested reading list
Key text or background reading
Tadelis, S. (2013). Game theory: An Introduction. Princeton University Press.