ECN 415 GAME THEORY – SYLLABUS
Assoc. Prof. Yeşim KUŞTEPELİ
DEU-Faculty of Business Department of Economics
Textbook: H. Scott Bierman and Luis Fernandez, Game Theory with Economic Applications, AddisonWesley, Second Edition 1998.
Graduate Assistant: Mustafa Bilman
Office Hours: 10:00-12:00
Tuesdays and by appointment
Objective: This class introduces the principles of noncooperative game theory, including strategic form
games, Nash equilibria, extensive form games, subgame perfection, repeated games, and games of
incomplete information. The analytic material is accompanied by many applications, examples and exercises.
Although game theory has been applied to many fields, focus is given to the kinds of game theory that have
been most useful in the study of economic problems, including some applications to political science.
Students are expected to have a background in economics. Therefore, the implicit prerequisites for this class
are ECN 101, ECN 102, ECN 201, and ECN 202.
Exams: There will be one midterm and one final exam besides homework assignments and presentations
whose weights are as follows:
Mid-term exam
Final exam
Homework and presentation
40 %
50 %
10 %
Each student will present a “news” item or paper on a subject (e.g. prisoner’s dilemma) chosen from the
subject list below. In addition, each student will hand out a short paper about a “person” in game theory (e.g.
John Nash). Students are encouraged to ask for assistance from the instructor on these issues.
Tentative Outline:
Week
1
2
3
4
5
6
7
8
9
10
11
12
13
14
Subject
Introduction and Nash Equilibrium
Oligopoly
Strategic Trade Policy
Property Rights and Efficiency
Voting Games
Sub game Perfect Equilibrium
Bargaining
Time-consistent Macroeconomic Policy
Repeated Games and Dynamic Competition
Uncertainty and Expected Utility
Moral Hazard and Incomplete Insurance
Moral Hazard and Involuntary Unemployment
Bayesian Nash Equilibrium
Auctions
Chapter
1
2
3
4
5
6
7
8
9
10
11
12
13
14
GENERAL DISCLAIMER: Changes to this syllabus may be made at any time during the course, as
circumstances warrant.