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| Semester | spring semester 2022 |
| Course frequency | Every spring sem. |
| Lecturers | Dragan Ilic (dragan.ilic@unibas.ch, Assessor) |
| Content | The course will briefly recapitulate the game theory material from the Bachelor introduction course. We will then delve into more complex topics such as incomplete information and dynamics, for example in auctions, in bargaining games, or signaling games. There will be lecture hours and dedicated 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 |
| Learning objectives | 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. |
| Bibliography | 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. |
| Comments | If you were ever in a bar and have asked yourself whether you should order beer or milk, this course is for you. The course will be taught "in class" with simoultaneous livestreaming and recording. |
| Weblink | Weblink to ADAM |
| Admission requirements | A Bachelor in Business and Economics is recommended. |
| Course application | Registration: Please enrol in MOnA. EUCOR-Students and students of other Swiss Universities have to enrol at the students administration office (studseksupport1@unibas.ch) within the official enrolment period. Enrolment = Registration for the exam! |
| Language of instruction | English |
| Use of digital media | No specific media used |
| Interval | Weekday | Time | Room |
|---|---|---|---|
| wöchentlich | Wednesday | 08.30-10.00 | Wirtschaftswissenschaftliche Fakultät, Auditorium |
| wöchentlich | Thursday | 16.15-18.00 | Wirtschaftswissenschaftliche Fakultät, Seminarraum S15 HG.31 |
| Comments | The course takes place 4 h weekly, but only during the first half of the semester. It will be taught "in class" with simoultaneous livestreaming and recording. |
| Modules |
Basic Module: Advanced Topics in Economics (Master's Studies: International and Monetary Economics) Core Module: Business (Master's Studies: Business and Economics (Start of studies before 01.08.2021)) Modul: Methoden der Wirtschaftswissenschaften (Master's Studies: European Global Studies) Module: Business Field: Strategy and Organization (Master's Studies: Business and Technology) Module: Core Courses in Business and Economics (Master's Studies: Business and Economics) Module: Selected Subjects of Economics and Jurisprudence (Master's Studies: Actuarial Science) Module: Specific Electives in Business and Economics (Master's Studies: Business and Economics) Module: Specific Electives in International Trade, Growth and the Environment (Master's Studies: Business and Economics) Module: Specific Electives in Marketing and Strategic Management (Master's Studies: Business and Economics) |
| Assessment format | record of achievement |
| Assessment details | Written exam: 04.05.22; 12:30-13:30. HS 102: A-H; Bernoullianum: I-Z. Addresses of the examination rooms: https://wwz.unibas.ch/en/studies/examinations/lecture-and-examination-rooms/ The exam is scheduled in presence. 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. |
| Assessment registration/deregistration | Reg.: course registration, dereg: cancel 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 |