Module ECON3301: Game Theory and Applications

Department: Economics and Finance

ECON3301: Game Theory and Applications

Prerequisites

• Microeconomics (ECON2021)

Corequisites

• None.

Excluded Combination of Modules

• None.

Aims

• The aim of this module is to equip students with the advanced knowledge and analytical skills associated with game theory and its economic applications.

Content

• Game Theory is the systematic study of strategic interactions that are present everywhere, not only in economics but in politics, sociology, law, computer science, and sports. This module will mainly cover an introduction to the tools of game theory with an emphasis on its application to real life problems. Topics will be drawn primarily from the following:
• Introduction to game theory: The first part of the module will develop the necessary tools to resolve conflicts in real life problems where economic agents strategise to improve their prospects. The module will consider Nash equilibrium as a solution concept and elaborate on its refinements. Then, it will cover four types of fundamental games: games of perfect and incomplete information, static and dynamic games. Finally, we will introduce cooperative games.
• Applications: After an introduction to fundamentals of game theory, the module will apply the tools acquired in the first part to propose a resolution in several real life problems: bargaining, auctions, market design, mechanism design and resource allocation.

Learning Outcomes

• At the conclusion of the module students should:
• be able to interpret scholarly articles that pursue a game theoretic approach;
• have explored, understood and appreciated the complexity and contradictions of the relevant academic literature and be able to identify their own research questions.

• At the end of this module, students should:
• be able to conduct game theoretic analysis for the resolution of practical problems driven by strategic behaviour;
• be able to comment on the design of markets and private and public policies at local, national and international level, informed by the knowledge of game theory acquired in the module.

• Written Communication;
• Planning, Organising and Time Management;
• Problem Solving and analysis by applying game theory knowledge;
• Using Initiative;
• Numeracy.

Modes of Teaching, Learning and Assessment and how these contribute to the learning outcomes of the module

• Teaching is by lectures and seminars. Learning takes place through attendance at lectures, preparation for and participation in seminars, and private study. Formative assessment is by means of a written assignment. Summative assessment is by means of a written examination and an assignment.

Teaching Methods and Learning Hours

Summative Assessment

Formative Assessment:

One written piece of work of not more than 1,000 words

■ Attendance at all activities marked with this symbol will be monitored. Students who fail to attend these activities, or to complete the summative or formative assessment specified above, will be subject to the procedures defined in the University's General Regulation V, and may be required to leave the University