Thinking Strategically

Volledige vakbeschrijving

In many situations, economic actors need to make decision while knowing that the final outcome will also depend on the decisions of others. Think, for instance, of competing firms who must choose a price for their product, knowing that their market share will also depend on the prices of the competitors. Such situations are called games, and the actors involved are called players. In order to reach a good decision, it is important for a player to reason about the decisions and motivations of his opponents. In this course you learn how to reason about your opponents in game theoretic situations, and how to use this reasoning to make good decisions. The theory will be applied to various economic situations of interest.