Applied Game Theory


Ár1. ár
ÖnnHaustönn/Fall 2019
Stig námskeiðsÓskilgreint
Tegund námskeiðsValnámskeið
UndanfararT-301-MATH, Stærðfræði III
T-302-TOLF, Tölfræði I
T-317-CAST, Stærðfræðigreining og tölfræði
T-419-STR2, Strjál stærðfræði II
V-201-RHAG, Rekstrarhagfræði I
V-625-REII, Rekstrarhagfræði II
SkipulagEkkert skráð skipulag.
Friðrik Már Baldursson
Jón Þór Sturluson
Loftur Hreinsson
Game theory is concerned with the analysis of strategic decisions, i.e. decisions where one must also take into account the decisions of others, because final outcomes depend on everyone involved. Game theory is therefore relevant for a broad range of decisions and has applications in many different disciplines, such as political science, psychology and biology. This course will, however, focus primarily on economic applications. Examples are wide ranging and include price setting by oligopolistic firms and the negotiation of international treaties on climate change.The course’s main objective is to provide a basic understanding of the formal analysis of decision problems using game theory and models of behaviour. Students will study how to take strategic considerations into account when making decisions. They will also learn how to predict how others will (rationally) behave when they are in strategic settings and how to apply these tools to settings from economics and business.The course will cover static and dynamic games with full and asymmetric information. Basic cooperative and bargaining theory will also be covered and applications to concrete examples will be emphasized.
  • Understand basic principles of logical / game theoretical analysis of decisions.
  • Knowledge about a number of special games and particular issues associated with them, such as repeated games (including infinitely repeated games), auctions and signalling games
  • Know central equilibrium concepts in non-cooperative game theory, such as Nash equilibrium, subgame-perfect Nash equilibrium, Bayesian Nash equilibrium, and perfect Bayesian equilibrium
  • Understand the solution concepts of cooperative game theory
  • Be familiar with economic applications of game theory
  • Formulate game theoretic models and solution concepts for the analysis of simple economic problems
  • Ability to analyse assumptions critically
  • Apply game theoretic equilibrium and solution concepts to the analysis of simple economic problems
  • Analyse decision problems with an independent and critical economic approach

Ekkert skráð lesefni.