Econ 790. Game Theory and Applications
Description. This course covers basic game theory and applications. Topics covered include strategic games with complete information, Bayesian games (with incomplete information), extensive games with perfect information, and extensive games with imperfect information. Equilibrium concepts covered include Nash equilibrium, mixed-strategy Nash equilibrium, rationalizability, Bayesian Nash equilibrium, subgame perfect Nash equilibrium, and sequential equilibrium. Depending on availability of time, additional topics may include strictly competitive games and repeated games. The course may include diverse applications such as in business strategy, auctions, voting, international trade, military conflicts, contracts, regulation, and industrial organization. Prerequisites: Math 127 and Math 526, or equivalent.
Econ 830. Game Theory and Industrial Organization
Description. Socio-economic situations involve interdependent decision-making in which individual decisions affect the decisions of others and thereby affect the collective outcome. The behavior of participants in these situations and their collective impact can be predicted with mathematical models from game theory.
This course provides a comprehensive introduction to game theory and its applications to industrial organization and other fields in economics and related disciplines. Basic game theoretic equilibrium concepts will be discussed in the context of static games, games of incomplete information, and dynamic games. We’ll also look at classes of games that have proved to be useful in industrial organization and other fields. These include monotone games, potential games, and network games.
Monotone games include those situations in which participants have incentives to take decisions in particular directions, that is, either decisions that are coordinated with those of others (games with strategic complements, for example, Bertrand oligopoly), or decisions that are opposed to those of others (games with strategic substitutes, for example, Cournot oligopoly), or a combination of the two (monotone games, for example, advertiser-consumer games). Potential games generalize the situation of aggregative games and are related to congestion games and have many applications in different fields. Network games are expanding fast both in the development of their theory and their applications in many different fields. Other classes of games can be studied as well, depending on time.
Prerequisites: Econ 801 and 802.