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Economic Theory

2019/2020
Учебный год
ENG
Обучение ведется на английском языке
3
Кредиты
Статус:
Курс обязательный
Когда читается:
3-й курс, 1 модуль

Преподаватель

Course Syllabus

Abstract

The theoretical grounds of game theoretical models will be also discussed, such as the idea of rational agent and the idea of connection between micro- and macro-behavior. Also the strategic behavior in the conditions of incomplete information will be studied, as well as evolutionary models and their applications in biology, economy and social sciences.
Learning Objectives

Learning Objectives

  • familiarize with the theoretical apparatus and practical methods of application of game theory and decision theory in economics and social sciences
Expected Learning Outcomes

Expected Learning Outcomes

  • know conceptual apparatus of game theory and decision theory
  • know different classes of games (in normal and extensive form, multistage games, games with imperfect information)
  • know how to find Nash equilibrium in static games and games in extensive form
  • be able to to solve game-theoretical problems and decision theory problems
  • be able to apply simple game-theoretical models in economics and social sciences
Course Contents

Course Contents

  • Introduction in Decision Theory and Game Theory
    Lecture 1. Introduction in Game Theory. Main Concepts. Relations with Microeconomics. Examples of Game Theory Applications in Social Sciences and Humanities. Lecture 2. Decision Theory Decision Trees, Preference Relations, Rational Player. Seminar 1. Simple Problems in Decision Theory Lecture 3. Decision Making with Uncertainty Games with Nature. Lotteries. Backward Induction. Seminar 2. Decision Making with Uncertainty. Problems Seminar 3. Decision Making with Uncertainty. Test 1.
  • Static Games and Nash Equilibrium
    Lecture 4. Static Games (Games in Normal Form) Main Definitions. The Concept of Equilibrium. Seminar 4. Solution Concepts Lecture 5. Dominance, Iterated Elimination of Dominated Strategies, Best Response. Elimination of Dominated Strategies. The Function of Best Response. Seminar 5. Iterated Elimination of Strictly Dominated Pure Strategies. Lecture 6. Nash Equilibrium in Pure Strategies. What is Nash Equilibrium and How to Find It. Seminar 6. Nash Equilibrium in Pure Strategies. Problems and Solutions. Lecture 7. Mixed Strategies. Mixed Strategies in a Normal Form Game. Seminar 7. Nash Equilibrium in Mixed Strategies. Problems and Solutions. Homework for the next seminar: Problems of Finding the Nash Equilibria in Mixed strategies.
  • Dynamic Games
    Lecture 8. Dynamic Games of Complete Information. Subgame-Perfect Nash Equilibrium. Games in Extensive Form. How to Find a Subgame Perfect Nash Equilibrium. Seminar 8. Solution of Extensive-Form Games by Backward Induction. Lecture 9. Multistage Games and Repeated Games How to Find Equilibrium in Multistage and Repeated Games. Seminar 9. Problems with Repeated Games. Lecture 10. Static Games of Incomplete Information. Bayesian Games. Equilibrium in Such Games. Seminar 10. Test 2. Dynamic Games Solutions.
  • Overview of Evolutionary Game Theory and Behavioural Economics
    Lecture 11. Overview of Evolutionary Game Theory and Behavioral Economics. Evolutionary Game Theory. Examples of Game Dynamics. Introduction in Behavior Game Theory.
Assessment Elements

Assessment Elements

  • non-blocking Class participation
  • non-blocking Test
  • non-blocking Oral exam
Interim Assessment

Interim Assessment

  • Interim assessment (3 module)
    0.2 * Class participation + 0.4 * Oral exam + 0.4 * Test
Bibliography

Bibliography

Recommended Core Bibliography

  • Mazalov, V. V. (2014). Mathematical Game Theory and Applications. Chichester, West Sussex: Wiley. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=817776
  • Webster, T. J. (2014). Analyzing Strategic Behavior in Business and Economics : A Game Theory Primer. Lanham, MD: Lexington Books. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=748851

Recommended Additional Bibliography

  • Gintis, H. (2014). The Bounds of Reason : Game Theory and the Unification of the Behavioral Sciences - Revised Edition (Vol. Revised edition). Princeton, New Jersey: Princeton University Press. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=714212
  • Schecter, S., & Gintis, H. (2016). Game Theory in Action : An Introduction to Classical and Evolutionary Models. Princeton: Princeton University Press. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=1090910
  • Vega-Redondo, F. (2003). Economics and the Theory of Games. Cambridge, UK: Cambridge University Press. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=125043