UCL Credits: 15
Total Learning Hours: 150
Module Coordinator: Dr Randolph Bruno
Taught By: Dr Randolph Bruno
To find out more about this module, please contact the Module Coordinator.
|Weekly Contact Hours: 3.0 (2 hour lecture and 1 hour tutorial per week)|
|Compulsory Module for: Year 1 students on Economics and Business with East European Studies|
Coursework Essay 2000 words (25%), 2 Hour Examination (75%)
Students play games based on the theory explained during lectures/tutorial and learn how to find the solution (Nash equilibrium and social optimum). They learn immediately the outcome of the game vis-a-vis their choices and this deepens the subject-matter understanding step by step.
The course aims to provide a comprehensive introduction to applied game theory with real and relevant examples from the business/management world, such as interactions between firms, governments and consumers. The concepts of strategic interaction, strategic form games, games tree, sequential moves, simultaneous moves, Nash Equilibrium, dominance, mixed strategies, uncertainty/incomplete information, dynamic/evolutionary games and repeated games will be unfolded step by step.
The knowledge that students will have acquired by the end of the course will serve as a solid foundation on which more focused and concentrated studies of intermediate microeconomics can be applied. By the end of the course, students will be able:
- to understand and analytically interpret themain concepts pertaining to game theory in general and strategic interactions in particular
- to solve simultaneous and sequential games both in complete information and incomplete information settings
- to identify the existence of strategic interaction in real world examples and to model these examples accordingly
- to re-interpret the concepts learned in the Introduction to Microeconomics module (e.g. duopoly, Cournot, Bertrand) in a strategic form game.
Aims and objectives
- To develop students’ awareness of the issues, concepts, theories pertaining Game Theory and strategic interactions in general
- To equip students with knowledge and understanding of different layers of transactions and bargaining power in the economic relationships between firms, consumers and public institutions (Central Bank, governments, EU).
- To equip students with necessary learning skills which will prove useful for applying game theory concepts and ideas to interpret real-world phenomena in business (domestic and international),advanced vs. developing countries and the role of trust in repeated interactions.
- Dixit, Avinash and Susan Keath (2015) Games of Strategy, Norton, New York and London, Fourth Edition.
- Heifetz, Aviad (2012) Game Theory, Interactive Strategies in Economics and Management , Cambridge University Press, UK.
- Cooper, W.Russell (1999) Coordination Games, Cambridge University Press, UK.
- Tresch, R. W. (2008) Public Sector Economics, Palgrave Macmillan
This module is not open to affiliate students.
Please note: This outline is accurate at the time of publication. Minor amendments may be made prior to the start of the academic year.