Zagrebačka škola ekonomije i managementa
Syllabus: Game Theory
SYLLABUS
Game Theory
(ECTS 8)
LECTURERS
Lecturers
TBA
Contact
E-mail:
TBA
COURSE DESCRIPTION
This course surveys the main ideas and techniques of game theoretic analysis related to strategic
behavior among parties having opposed, mixed or similar interests. Students will learn how to
recognize and model strategic situations, to predict when and how their actions will influence the
decisions of others and to exploit strategic situations for their own benefit. The course will focus
mainly on non-cooperative game theory and its applications. The major topics covered are decision
theory, strategic form games, extensive form games, Bayesian games, mechanism design, infinite
horizon games and repeated games.
HOURS
Theoretical classes, lectures
Seminars and problems
solving exercises
Total
30 hours (15 weeks * 2 hours)
30 hours (15 weeks * 2 hours)
60 hours
PREREQUISITES
Students are expected to be familiar with 1st year micro I and micro II.
GRADING
Your grade will be determined based an exam composed of two parts each worth 30 points, regular
exercises divided into two sections each worth 15 points and an essay worth 10 points
One should expect the following percentage performance/grade schedule:
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Zagrebačka škola ekonomije i managementa
Syllabus: Game Theory
90-100% = excellent (5),
80-89% = very good (4),
70-79% = good (3),
55-69% = pass (2).
PRELIMINARY COURSE OUTLINE
1) Introduction to game theory, game theory and theory of perfect competition, rational behavior,
bounded behavior
2) Strategic games, Nash equilibrium, Bayesian games
3) Combined, correlated and evolutionary equilibrium, Nash equilibrium with combined
strategies
4) Rationalities and iterative rejection of dominant actions
5) Knowledge and equilibrium
6) Perfect information games, subgame perfect equilibrium
7) Negotiation games
8) Sequential games, infinite games, finite games, Nash Folk theorem
9) Punishment, punishment of the punisher, rewarding the winner
10) Structure of subgame perfect equilibrium with discounting condition
11) Implementation theory, implementation od dominant strategies, Nash implementation
12) Extensive games with imperfect information, equivalence principle
13) Sequential equilibrium, strategies and beliefs
14) Games with observed actions, perfect Bayesian equilibrium
15) Trembling hand perfect equilibrium
READING LIST
A. Mass-Colell, M. D. Whinston, i J. R. Green (1995), Microeconomic Theory, Oxford
University Press
Fudenberg, D. i Tirole, J. (1995), Game Theory, MIT Press
Gibbons, R. (1992), Game theory for Applied Economists
Osborne, M. J. I Rubinstein, A. (1994), A Course in Game Theory, MIT Press
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