The course provides an introductory treatment of static and dynamic game theory, under complete and incomplete information. Particular emphasis will be placed on applications, especially in economics. These include, among others: the study of firms’ strategies concerning production, pricing, positioning, and marketing decisions in different market settings; selected models of direct bargaining typical of labor and financial markets; the main auction mechanisms for the allocation of goods and services, rights, and financial assets; and issues related to the “credibility” or “sustainability” of strategies over time (e.g., monetary and fiscal policy, public finance measures, and corporate policies).
teacher profile teaching materials
1. Static games: Normal form games. Solution concepts. Nash equilibrium in pure and mixed strategies. Dominance solvable games. Applications.
2. Dynamic games: Games in extensive form. Nash equilibria. Backward induction and Subgame Perfect Nash Equilibria. Applications. Repeated games. Applications.
Part II – Games of incomplete information.
3. Static games. Normal form representation. Bayesian-Nash equilibrium. Applications.
Class notes on auctions will be make available on the course Moodle page.
Mutuazione: 21210236 Game Theory in Scienze Economiche LM-56 R TIRELLI MARIO
Programme
Part I – Games of complete information.1. Static games: Normal form games. Solution concepts. Nash equilibrium in pure and mixed strategies. Dominance solvable games. Applications.
2. Dynamic games: Games in extensive form. Nash equilibria. Backward induction and Subgame Perfect Nash Equilibria. Applications. Repeated games. Applications.
Part II – Games of incomplete information.
3. Static games. Normal form representation. Bayesian-Nash equilibrium. Applications.
Core Documentation
Martin J. Osborne, An Introduction to Game Theory, Oxford University Press. 2003 or later editions.Class notes on auctions will be make available on the course Moodle page.
Attendance
Three weakly lectures during the academic semesterType of evaluation
A mid term exam for students attending classes and a final exam. Both exams are written, closed books.