Course Description: | This course introduces a wide variety of applications of game theory for students who are already familiar with basic game theoretic concepts (students are assumed to have taken either Game Theory 1 or Game Theory A). The key aim is to demonstrate how useful game theory can be to understand real-life situations of interest. The course primarily focuses on formal models and problem-solving, but students are also induced to think and argue intuitively.
The topics covered include: collusion among firms, bargaining, contracts and enforcement, signalling, reputation, hold-up and asset ownership, signalling, reputation, and communication.
Text: STRATEGY:AN INTRODUCTION TO GAME THEORY by Watson.
Assessment: Midterm exam (30%), final exam (50%), homework assignments and attendance (20%). |