MSc Economics / Course details

The course is a rigorous introduction to game theory, exploring various models and their applications.

Pre-requisite(s): ECON60081 AND (ECON60101 OR ECON60401)

This is a very challenging course!  Students are expected to have obtained good marks in the units above. 

The course is a rigorous introduction to game theory, exploring various models and their applications.

By the end of this unit, students will be familiar with basic equilibrium solution concepts and ideas from game theory, will be able to solve related problem, and will be prepared to take any advanced micro-economics unit at research level.

Provisional

1. Games in strategic form.
2. Games in extensive form.
3. Games with incomplete information and applications.

Lectures and tutorials.

Problem Sets        20%
Written exam         80%
Final Mark             Max between Exam and weighted average of the exam and the assignments
 

The course is based on items 1 and 2 in the reading list, with some supplementary reading references to the other items on the list, as well as some papers.

Students will be asked to do weekly preliminary reading of relevant material prior to the lecture. Further
reading in other texts may be also required as preparation for lecture. Student should be aware that these
readings are mandatory and are a part of the unit’s requirements and material for the exam.

The lecture itself will concentrate on parts of the material which are viewed as fundamental for further
understanding of the course as a whole. Examples will be given, but the interaction is dynamic – students will be given 5 problem sets. MSc students are required to submit 2 of these for marking and PhDs should
submit all for marking. Students may submit more, in which case the best 2 will be chosen. Solutions will be discussed at class.

Reading List:
1. Mas-Colell, Whinston, Green “Microeconomic Theory”
2. Reny, Jehle, “Advance Microeconomic Theorey”
3. M.J. Osborne, “An Introduction to Game Theory,” Oxford University Press.
4. M. Maschler, E. Solan, and S. Zamir, “Game Theory,” Cambridge press.
5. V. Krishna, “Auction Theory,” Elsevier Press.
6. P. Klemperer, “Auction Theory and Practice,” Princeton University Press.

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