ECON3013

The fact is that most real-world decisions are not made in isolation but involve interaction with others. Hence, in deciding how to act optimally, each economic agent must consider how other agents are likely to act and react. Game theory is a discipline that provides a methodology and set of concepts for modeling and analyzing interactive decisions among multiple agents. We will learn how to use game-theoretic tools to study situations involving strategic interactions with potential conflict and cooperation i.e., situations where the eventual outcome predictions depend not just on your decision and chance but on the actions of others as well. Game theory has a wide range of applications in economics (industrial organization, auctions, market design, political economy, etc.), political science, computer science, law, international relations, sports, politics, business, etc. The basic definitions, concepts, and equilibrium notions will be discussed in detail. At the same time, much of the course will be devoted to using game theory to understand applications in economics and related fields. At the end of the course, the aim is to develop an understanding of what constitutes a good game theoretical model for addressing an economic question.

012556

Every Fall & Spring