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ES30092: Game theory

Follow this link for further information on academic years Academic Year: 2014/5
Further information on owning departmentsOwning Department/School: Department of Economics
Further information on credits Credits: 6
Further information on unit levels Level: Honours (FHEQ level 6)
Further information on teaching periods Period: Semester 1
Further information on unit assessment Assessment Summary: CW 20%, EX 80%
Further information on unit assessment Assessment Detail:
  • Coursework (CW 20%)
  • Exam (EX 80% - Qualifying Mark: 35)
Further information on supplementary assessment Supplementary Assessment: Reassessment not allowed
Further information on requisites Requisites: Before taking this unit you must take ES20011 and take ES20012
Further information on descriptions Description: Aims:
To provide students with:
* an intellectual framework to analyse situations in which the behaviour of agents is driven by strategic considerations;
* a set of analytical tools to interpret a wide range of phenomena in the social sciences.

Learning Outcomes:
At the end of the unit students should:
* be able to use the concept of Nash Equilibrium in simple oligopolistic games, and voting games;
* understand the concept of subgame perfect equilibrium and apply it to a wide set of games;
* understand the logic of Bayesian games and use them to analyse real-world applications.

Problem solving, abstraction, modelling of real-world situations, recognising strategic situations.

I. Introduction: What is game theory; The theory of rational choice.
II. Games with Perfect Information:
II.1 Nash Equilibrium (pure and mixed) - theory and applications (Cournot's model of oligopoly, Bertrand's model of oligopoly, War of Attrition, auctions).
II.2 Extensive Games: strategies and outcomes; Nash equilibrium; subgame perfect equilibrium; applications (holdup game; ultimatum game; Rubinstein bargaining).
III. Games with Imperfect Information
III.1 Bayesian Games: motivating examples, concepts, and definitions.
III.2 Bayesian games - Illustrations: Cournot duopoly with cost uncertainty, procurement, Myerson-Satterthwaite Impossibility of efficient bilateral trade, monopoly regulation.
Proposed textbook:
"An introduction to game theory" by Martin J Osborne, OUP 2003.
Further information on programme availabilityProgramme availability:

ES30092 is Optional on the following programmes:

Department of Economics
  • UHES-AFB03 : BSc(Hons) Economics (Year 3)
  • UHES-AKB03 : BSc(Hons) Economics with Year long work placement (Year 4)
  • UHES-AFB02 : BSc(Hons) Economics and International Development (Year 3)
  • UHES-AKB02 : BSc(Hons) Economics and International Development with Year long work placement (Year 4)
  • UHES-AFB01 : BSc(Hons) Economics and Politics (Year 3)
  • UHES-AKB01 : BSc(Hons) Economics and Politics with Year long work placement (Year 4)

* This unit catalogue is applicable for the 2014/15 academic year only. Students continuing their studies into 2015/16 and beyond should not assume that this unit will be available in future years in the format displayed here for 2014/15.
* Programmes and units are subject to change at any time, in accordance with normal University procedures.
* Availability of units will be subject to constraints such as staff availability, minimum and maximum group sizes, and timetabling factors as well as a student's ability to meet any pre-requisite rules.