Back
| Semester | spring semester 2021 |
| Course frequency | Every spring sem. |
| Lecturers |
Dragan Ilic (dragan.ilic@unibas.ch)
Catherine Roux (catherine.roux@unibas.ch, Assessor) |
| Content | Game Theory (first half of the semester): The course is divided into lecture hours and exercise hours. Problem sets will be available before every lecture hour and will be partly solved together in class. Block 1: Static Games of Complete Information: • Introduction, normal form, best response, dominant strategies, iterated elimination, Nash equilibrium • Mixed strategies • Proof of existence, multiple equilibria, refinements Block 2: Dynamic Games of Complete Information: • Extensive form, backwards induction • Subgame perfection, repeated games • Infinitely repeated games, bilateral bargaining Block 3: Static Games of Incomplete Information: • Bayesian games, Bayesian Nash Equilibrium • First-price auction, double auction Block 4: Dynamic Games of Complete and Incomplete Information: • Purification of mixed strategies, Perfect Bayesian Equilibrium • Signaling games Theory of the Firm (second half of the semester): Markets and Prices as Coordination and Incentive Devices • Transaction Costs • Team Production • Asymmetric Information • Principal-Agent Theory • Signaling • Efficiency Wages |
| Learning objectives | Game Theory: As Gibbons (1992, xi) puts it: “Game Theory is the study of multiperson decision problems. Such problems arise frequently in economics. As is widely appreciated, for example, oligopolies present multiperson problems – each firm must consider what the others will do. But many other applications of game theory arise in fields of economics other than industrial organization. At the micro level, models of trading processes (such as bargaining and auction models) involve game theory. At the intermediate level of aggregation, labor and financial economics include game-theoretic models of the behavior of a firm in its input markets (rather than its output market, as in an oligopoly). There are also multiperson problems within a firm: many workers may vie for one promotion; several divisions may compete for the corporation’s investment capital. Finally, at a high level of aggregation, international economics includes models in which countries compete (or collude) in choosing tariffs and other trade policies, and macroeconomics includes models in which monetary authority and wage or price setters interact strategically to determine the effects of monetary policy.” This course will introduce students to the main concepts and techniques of game-theoretic analysis. At its core lies the understanding of strategic interactions between deciding agents. The students will appreciate how to apply game-theoretic analysis to strategic settings. Theory of the Firm: Why do firms exist? Why are firms organized the way they are? Traditional economic models leave little room for firms or other organizations as they focus on market exchange between individuals. This course will introduce students to microeconomic models that try to explain the existence and structure of firms as we observe them in the real world. Economics brings a rigorous approach that is grounded in theory. The course will provide a basic understanding of economic approaches to modeling and understanding aspects of firms, their structure, the behavior they create, and how they differ from market interaction. About half of the course will be based on the standard textbook by Milgrom and Roberts, the other half will consist of influential articles on the economics of organizations, by authors such as Coase, Williamson, Hart, and Tirole. |
| Bibliography | Literature part Game Theory: The teaching program follows Robert Gibbon’s book “Game Theory for Applied Economists”, also known as “A Primer in Game Theory,” (Princeton University Press, 1992). Slides for each lecture are uploaded to ADAM in advance. Literature part Theory of the Firm: The readings will consist of both scholarly research articles and chapters from the textbook, Economics, Organization and Management, by Paul Milgrom and John Roberts (1992, Prentice Hall). Both kinds of readings will be made available online. |
| Comments | For all MIME students: This lecture can be a substitute in the Module 1: Advanced Topics in Econonomics for the course 31960 Microeconomics and Psychology of Decision Making which is taught in fall term. |
| Weblink | Weblink zu ADAM |
| Admission requirements | Completed Bachelor in Business and Economics |
| Course application | Registration: Please enroll in MOnA. EUCOR-Students and students of other Swiss Universities have to enroll at the students administration office (studseksupport1@unibas.ch) within the official enrollment period. Enrollment = Registration for the exam! |
| Language of instruction | English |
| Use of digital media | Online, mandatory |
| Interval | Weekday | Time | Room |
|---|---|---|---|
| wöchentlich | Wednesday | 08.15-10.00 | Vesalianum Seiteneingang, Grosser Hörsaal (EO.16) |
| wöchentlich | Friday | 14.15-16.00 | Vesalianum Seiteneingang, Grosser Hörsaal (EO.16) |
| Comments | The "in class" sessions are broadcats with livestreams and recorded. After April 16, 2021 the course will be taught digitally without any fixed timeslots. |
| Date | Time | Room |
|---|---|---|
| Wednesday 03.03.2021 | 08.15-10.00 | - Online Präsenz -, -- |
| Friday 05.03.2021 | 14.15-16.00 | - Online Präsenz -, -- |
| Wednesday 10.03.2021 | 08.15-10.00 | - Online Präsenz -, -- |
| Friday 12.03.2021 | 14.15-16.00 | - Online Präsenz -, -- |
| Wednesday 17.03.2021 | 08.15-10.00 | - Online Präsenz -, -- |
| Friday 19.03.2021 | 14.15-16.00 | - Online Präsenz -, -- |
| Wednesday 24.03.2021 | 08.15-10.00 | - Online Präsenz -, -- |
| Friday 26.03.2021 | 14.15-16.00 | - Online Präsenz -, -- |
| Wednesday 31.03.2021 | 08.15-10.00 | - Online Präsenz -, -- |
| Friday 02.04.2021 | 14.15-16.00 | Ostern |
| Wednesday 07.04.2021 | 08.15-10.00 | - Online Präsenz -, -- |
| Friday 09.04.2021 | 14.15-16.00 | - Online Präsenz -, -- |
| Wednesday 14.04.2021 | 08.15-10.00 | - Online Präsenz -, -- |
| Friday 16.04.2021 | 14.15-16.00 | - Online Präsenz -, -- |
| Modules |
Basic Module: Advanced Topics in Economics (Master's Studies: International and Monetary Economics) Core Module: Business (Master's Studies: Business and Economics) (Pflicht) Modul: Methoden der Wirtschaftswissenschaften (Master's Studies: European Global Studies) Module: Core Competences in Economics (Master's Studies: Sustainable Development) Module: Preparation Master's Thesis in Economics (Master's Studies: Sustainable Development) Module: Selected Subjects of Economics and Jurisprudence (Master's Studies: Actuarial Science) |
| Assessment format | end-of-semester examination |
| Assessment details | combined written exam: 10.06.21; 15:00-16:30. The exam will take place at Basel Exhibition Center (Messe Basel). In case COVID-19 protective measures prevent examination on site, the faculty reserves the right to conduct the examination electronically during the same time slot. You will receive details of the on-site examinations (Exhibition Center or WWZ) by email approximately one week before the examination date. |
| Assessment registration/deregistration | Registration: course registration |
| Repeat examination | no repeat examination |
| Scale | 1-6 0,1 |
| Repeated registration | as often as necessary |
| Responsible faculty | Faculty of Business and Economics , studiendekanat-wwz@unibas.ch |
| Offered by | Faculty of Business and Economics |