Game Theory and Economics

School of Business and Economics

Game Theory and Economics

Full course description

This course discusses the main concepts from cooperative and non- cooperative game theory:
- Cooperative game theory: core, Shapley value, nucleolus.
- Non-cooperative game theory: Nash equilibrium, subgame perfect equilibrium, Bayesian and perfect Bayesian equilibrium.
The emphasis will be on concepts and applications. Applications range from oligopoly theory to job market signalling, investment policies, organisational strategies, and cost allocation.

Course objectives

Knowledge of the main concepts in cooperative and non-cooperative game theory; skills in applying these concepts in economic models.

Prerequisites

1. The course is open for all students, although Economics students should be aware of the challenging technical level of this course. The course Thinking strategically could be a proper alternative.
2. This course is compulsory for 2nd-year students Econometrics and Operations Research.
3. Exchange students need to follow a Bachelor in economics, not in business and must have a decent level in mathematics, especially calculus. Some prior knowledge about microeconomics would be helpful.
An advanced level of English.

Game Theory and Economics