Program Overview

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Advanced Game Theory

Course Description

The course covers the standard parts of non-cooperative game theory, focusing mostly on dynamic games. The teaching covers the most important solution concepts for strategic and extensive form games. We cover different approaches to sequential rationality in dynamic games. Also, the theory of games under uncertainty is discussed, leading to the extension of the solution concepts previously encountered. Furthermore, we study specific classes of games (e.g. supermodular games and global games) that are often used in economic theory. Finally, we illustrate a more axiomatic approach by discussing the basics of social choice theory.

We will formally show under which assumptions the covered solution concepts exist and derive certain properties. We will then illustrate and apply the solution concepts in examples and exercises.

This is a mathematically oriented course of game theory and covers topics as:

• Strategic form games: Pure and mixed strategies, dominant and dominated strategies, rationalizable strategies, Nash equilibrium, correlated equilibrium, and evolutionarily stable equilibrium
• Extensive form games: Sequential rationality, backward induction, sub-game perfect equilibrium, sequential equilibrium
• Dynamic games of complete information: Bargaining games, repeated games
• Games of incomplete information: Bayesian Nash equilibrium, perfect Bayesian equilibrium, sequential equilibrium

Education

• MSc programme in Economics – elective course
• The PhD Programme in Economics at the Department of Economics:
  • The course is an elective course with research module. PhD students must contact the study administration AND the lecturer in order to register for the research module and write the research assignment.
  • The course is a part of the admission requirements for the 5+3 PhD Programme.
• The course is open to:
  • Exchange and Guest students from abroad
  • Credit students from Danish Universities
  • Open University students

Learning Outcome

After completing the course the student is expected to be able to:

• Define and critically discuss the key solution concepts in game theory.
• Prove main theorems in game theory.
• Solve static and dynamic games with full rigor.
• Formulate game theory models and solve.
• Evaluate the implications of a chosen modelling approach and solution concept.
• Apply theoretical analysis on chosen topics.
• Analyse situations where strategic behaviour is important.
• Read and evaluate research articles that apply game theory as the method of analysis.
• Search for relevant research articles independently.
• Master the broad analytical approach on game theory when analyzing and solving questions where strategic behavior plays a role in complex and unpredictional situations.
• Find new suitable sources to expand the learned knowledge and skills on game theory when facing questions in new contexts.

Teaching and Learning Methods

The course is structured around three kind of classes:

• Basic lectures, where we will go through the main theory with applications, focusing on understanding the key concepts illustrated by examples and exercises.
• Advanced lectures, where we prove main theorems.
• Seminar classes discussing research papers and apply game theory to real world problems. Some lectures integrate basic and advanced kind of classes.

Literature

• George Mailath (2020): ”Modeling Strategic Behavior: A Graduate Introduction to Game Theory and Mechanism Design”
• Microeconomic Theory (1995) by Andreu Mas-Colell, Michael D. Whinston, and Jerry R. Green.
• Including lecture notes and journal articles.

Recommended Prerequisites

The student should have a sound knowledge of game theory and decision under uncertainty from the courses Microeconomics III and Microeconomics II.

Remarks

• Schedule: 2 hours lectures one to 2 times a week from week 6 to 20.
• Feedback form: Oral collective feedback during the content of the lectures. Each student receives written individual feedback on the mandatory assignments.

Exam

• ECTS: 7.5 ECTS
• Type of assessment: On-site written exam, 3 hours under invigilation
• Examination prerequisites: To qualify for the exam the student must no later than the given deadlines during the course hand in and have approved 3 out of 4 mandatory assignments.
• Aid: No aids allowed
• Marking scale: 7-point grading scale
• Censorship form: No external censorship

Re-exam

• Reexamination form is the same as the ordinary exam form.

Criteria for Exam Assessment

Students are assessed on the extent to which they master the learning outcome for the course.

Course Type

• Single subject courses (day)

Workload

• Category: Lectures
• Hours: 42
• Preparation: 161
• Exam: 3
• English: 206

Kursusinformation

• Language: English
• Course number: AØKK08408U
• ECTS: 7.5 ECTS
• Programme level: Full Degree Master, Ph.D.
• Duration: 1 semester
• Placement: Spring
• Price: Information about admission and tuition fee: Master and Exchange Programme, credit students and guest students (Open University)

Studyboard

• Department of Economics, Study Council

Contracting Department

• Department of Economics

Contracting Faculty

• Faculty of Social Sciences

Course Coordinator

• Rune Midjord

Teacher

See "Course Coordinators".