Game Theory and Application
ECO 4400
Fall 2015 Syllabus
Course Information
Class Meeting: M & W 9:35 - 11:25am.
Classroom: MAT 118.
Instructor: Wenche Wang, MAT 337, wangwc121@ufl.edu.
Office Hour: M & T 3:30 - 5pm or by appointment.
Course Description
This course introduces some basic elements of Game Theory and discusses its economic applications. Game
Theory is an analysis of situations in which the payoff from an individual’s actions depend upon the actions
of others. It attempts to provide a formal framework and solution concepts to understand such situations
and to make better strategic decisions. Game Theory has been widely applied in fields such as economics,
political sciences, biology, and computer science.
Game Theory is a branch of mathematics. Rather than focusing on mathematical proofs or programming,
this course emphasizes on the conceptual analysis and economic applications. The math requirement is
limited to basic calculus but more advanced mathematics techniques would help better understand the game
theory reasonings.
Prerequisite
ECO 2023 Principles in Microeconomics
Calculus I
Textbook
Games, Strategies, and Decision Making, by Joseph Harrington, Worth Publishers.
Attendance Policy
Attendance is mandatory in this class. Absence from each class will result in a point off from your final
grade. Late arrivals distract the instructor and other students and will result in 0.5 point off from final
grade. Notify me in advance for excused absence, such as doctor’s appointment and job interviews.
Classroom Policy
• Talking in class constitutes class disruption. You are welcome to raise question regarding class materials
but other discussion is not allowed.
• Please switch your cell phone to silent mode to avoid distracting the instructor and other students.
• Laptop is not needed during class. This course is mathematically intensive and therefore it is inefficient
to take notes with laptops.
1
• Students with disabilities who require room accommodation should contact me early in the semester
to discuss individual needs.
• Please check your e-mail for announcements.
Academic Honesty
Academic dishonesty (such as plagiarism and cheating on exams) will be referred to Student Conduct and
Conflict Resolution and may result in a failing grade in the course. Even further penalties can be assessed
by Student Conduct and Conflict Resolution.
Grading Policy and Scale
Your grade is determined by your performance in homework assignments, quizzes, exams, and class participation.
Homework
You will be given four problem sets. Discussion is encouraged and you can turn in answers in a group of no
more than four students. Problem sets are collected at the beginning of the class period. No late submission
is accepted.
Quiz
Five in-class quizzes will be given at the beginning of class. These quizzes test basic understanding of models
and concepts covered in the previous lectures. There is no make-up quiz.
Exam
There will be two midterm exams and a final exam. The second midterm will be a take-home exam but the
other two are both in-class. The take-home midterm is open book open note but discussion between students
or any help from tutors or other professors is strictly forbidden. You will be given 5 days to complete the
exam. Late submission will result in 20% reduction from exam grade. The final exam is cumulative and will
be in the last day of class. If for any reason you are not able to take the exam at the scheduled time, please
notify me before exam time.
Participation
In-class participation is highly encouraged. Students who participate in class will receive extra credits up to
5 points towards final grade.
Scale
Homework
Quiz
Midterm 1
Midterm 2
Final
90-100
87-90
80-87
77-80
70-77
67-70
60-67
0-60
2
20%
20%
20%
20 %
20%
A
B+
B
C+
C
D+
D
E
Calendar (tentative)
Dates
Aug 24
Aug 26
Aug 31
Sep 3
Sep 7
Sep 9
Sep 14
Sep 16
Sep 21
Sep 23
Sep 28
Sep 30
Oct 5
Oct 7
Oct 12
Oct 14
Oct 19
Oct 21
Oct 26
Oct 28-Nov 4
Nov 9
Nov 11
Nov 16
Nov 18
Nov 23, 25
Dec 2
Dec 7
Dec 9
Topics
Introduction
Math review I
Expected utility, Strategic form games
Dominant strategies
Labor Day
Nash equilibrium
N-Player game
Mixed strategies
Extensive form game
Backward induction, Subgame perfection
Backward induction, Subgame perfection
Review
Midterm 1
No Class
Cournot
Bertrand, Stackelberg
Math review II Repeated games
Repeated games
Review
Midterm 2
Incomplete Information (static game)
Veterans Day
Incomplete Information (dynamic game)
Signaling
Thanksgiving Break
Other Topics
Review
Final
3
Assignment
Quiz
Quiz 1
Quiz 2
Homework 1
Quiz 3
Homework 2
Quiz 4
Homework 3
Homework 4
Quiz 5
Homework 5