This module aims to provide students with a rich background in the concepts and techniques of game theory, its uses, limitations, and issues. The course is also applied: it focuses on several important cases of strategic interaction, including auctions, interactions between rival firms, moral hazard and adverse selection, and the theory of the firm. Referring to several papers and excerpts, students will learn to analyse and critically evaluate the process of model-building, as well as examining whether the empirical evidence (observational and experimental) supports the various predictions.
Upon completion of the course, students will be able to evaluation the impact of strategic considerations in the analysis of interactions among decision-makers. They will have learned how to apply game theory to issues in microeconomics. In so doing, students will have gained an appreciation of different solution concepts and the circumstances in which they are applied. In completing the tests, students will demonstrate their problem-solving analytical and deductive skills.
Upon completion of the course, students will be able to evaluation the impact of strategic considerations in the analysis of interactions among decision-makers. They will have learned how to apply game theory to issues in microeconomics. In so doing, students will have gained an appreciation of different solution concepts and the circumstances in which they are applied. In completing the tests, students will demonstrate their problem-solving analytical and deductive skills.