Advanced Microeconomics: Game Theory
This course presents the foundations of, and selected topics in, game theory. We will review basic definitions and equilibrium concepts, and develop applications ranging from auctions to political economy and industrial organization. We will also discuss evidence from experimental games. The goal is to develop a structured way of thinking about strategic interactions, which students can use in their own work.Game theory is a formal subject with theorems and proofs. However, it is used in all fields of economics, and I particularly encourage students with applied interests to attend. The material covered is useful for diverse fields including psychology and economics,industrial organization, and macroeconomics.
By the end of this course, students will have:
1. Knowledge and understanding of game theory at a level required to read current research in economics in applied theory.
2. The ability to use, modify and extend existing game theory models in the students’ own research.
3. The ability to develop game theory models for the student’s own research in 1
4. The ability to read current research in game theory with the help of reference texts
The course is intended for second-year MA and first-year PhD students. While no prior knowledge of game theory is assumed—so that in principle first-year MA students can also take the course—familiarity with the first year MA micro sequence is useful. Requirements consist of homework assignments and a final exam. Students are encouraged to work in groups on the homework assignments, but each student must submit her or his own solution.
Your course grade will be determined as follows:
Final exam 50%