Semester Two 2010
An introduction to non-cooperative game theory and applications, covering static and dynamic games of complete and incomplete information. Game Theory examines the issue of how people make decisions when the consequences of their decisions are influenced by the decisions of others. The focus is on non-cooperative game theory, which, despite its name, can be used to analyse situations involving either cooperation or conflict, or intermediate situations. Students will be exposed to game theory in action in order to learn how to construct and analyse models of economic, political and social interactions. The major topics covered include games with simultaneous moves, mixed strategies, coordination, games with sequential moves, evolution and learning, repeated games, and simultaneous and sequential move games with asymmetric information. The theory will be developed along with illustrative applications from the following topics: implicit contracts and supporting cooperation in continuing relationships, bargaining, strategic moves, brinkmanship, signalling, screening and cheap talk, bidding and auctions, collective action, and strategic voting. Game Theory is a course designed for those with possible ambitions to proceed to enrolment in an Honours degree in Economics, although it is not confined to these students.
Examination and Formal Tests
Osborne, Martin J;
An introduction to game theory;
Oxford University Press, 2004.
There will be two term tests which count for 50% of the total course grade each. To prepare you for the tests, "take-home" exercises will be regularly assigned IN CLASS. These will not be graded but it is crucial you work on them in order to do well in this course.
For further information see
Department of Economics and Finance.
All ECON322 Occurrences
Semester Two 2010