Economics 414: Game Theory [Syllabus | Grades| Past Exams]

Professor Daniel R. Vincent
Tuesday and Thursday, 9:30 am to 10:45 pm, Tydings 0111, Spring 2003

This course studies the competitive and cooperative behavior that results when several parties with conflicting interests must work together. We will learn how to use game theory to study situations of potential conflict -- situations where the eventual outcome depends not just on your decision and chance, but the actions of others as well. Applications are drawn from economics, business, and political science. Typically there will be no clear cut "answers" to these problems (unlike most single-person decisions). Our analysis can only suggest what issues are important and provide guidelines for appropriate behavior in certain situations. 

Course Materials (Chapter references are to Avinash Dixit and Susan Skeath, Games of Strategy, Norton, 1999)

 
Slides (Adobe Acrobat PDF) and Reading Problem Sets/Exams 
  1. Introduction(DS Ch. 1)
  2. An Introduction to Games and Their Theory II: Components of Games, Strategies, players, information sets, types of strategies, different ways to represent games. (DS Ch. 2)
  3. An Introduction to Games and Their Theory IIIi: Payoffs, profits, expected utility, common knowledge (DS Ch. 2 and Ch. 5, Appendix)
  4. An Introduction to Games and Their Theory IIIii: Payoffs, profits, expected utility, common knowledge (DS Ch. 2 and Ch. 5, Appendix)
  5. An Introduction to Games and Their Theory IV: Best Responses (DS Ch. 2 and Ch. 5, Appendix)
  6. Sequential Games(DS Ch. 3)
  7. Simultaneous Move Games(DS Ch. 4)
  8. Mixed Strategies(DS Ch. 5 and 6)
  9. Market Games I: Cournot
  10. Market Games II: Bertrand
  11. Repeated Games(DS Ch. 8.1,8.2)
  12. Uncertainty and Information I: Setup(DS Ch. 12.1-12.3)
  13. Uncertainty and Information II: Screening and Signalling (DS Ch. 12.4)
  14. Uncertainty and Information IIII: Incentive Contracts (DS Ch. 12.3)
  15. Bargaining Games(DS Ch. 16)
  16. Auction Games(DS Ch. 15)
  17. Review
  1. Problem Set 1 (Due Feb. 25 2003)
  2. Problem Set 1 Solutions
  3. Problem Set 2
  4. Problem Set 2 Solutions
  5. Midterm 03/20, Solutions
  6. Problem Set 3 (Due April 15, 2003)
  7. Problem Set 3 Solutions 
  8. Problem Set 4 
  9. Problem Set  4 Solutions 
  10. Problem Set 5 
  11. Problem Set 5 Solutions 
  12. Final 1:30-3:30 pm, TBA
  13. Final Exam Solutions