PRESENTATION GAME THEORY Goals n In this course we will introduce - - PowerPoint PPT Presentation

GAME THEORY

PRESENTATION

Goals

n In this course we will introduce some basic

ideas about Game Theory as well as different types of games.

n We will study the main equilibrium concepts

(Nash, subgame perfect and Bayesian equilibria).

n The theory will be illustrated with economic

applications: non competitive markets, political competition, bilateral negotiations, auctions, voting systems and market cooperation.

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Program

n

Three parts

1)

Static Games

q

4 weeks

2)

Dynamic Games

q

5 weeks

3)

Repeated and Bayesian Games

q

4 weeks

Evaluation I

n In the “convocatoria ordinaria” (January) the final grade is based

• n a final exam (60%). The remaining 40% of the grade is

allocated based on class performance.

n Class Grade: 40%, of which

q 50% quizzes

q Two quizzes q A quiz consists of several questions and problems from the exercise list

q 25% Exercises (public class presentation) q 25% Magistral class participation q Class grade = 0.25(quiz 1) + 0.25(quiz 2) + 0.25(Exercises) +

0.25(magistral class)

Evaluation II

n Final exam grade

q The exam will be common to all groups. q In “convocatorias extraordinarias” the grade

is the maximum between the grade computed with the formula for the “convocatoria ordinaria” and the grade of the final exam.

Evaluation III

n During the reduced class, 4 or 5 students will

be randomly chosen within the class list to present publicly the solution of one problem each.

n In each class any student can be chosen

regardless of how many times they have already presented.

n The random process will guarantee that each

student will be chosen 2 or 3 times (depending on the group).

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Evaluation IV

n In approximately half (randomly chosen)

• f the magistral classes, the professor

will keep the last 10 minutes to ask a few questions that should be answered in writing.

n These questions will be used to

evaluate the participation in the magistral class.

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Practical Aspects I

n Reduced classes will be used to work on the

exercises lists. All theoretical questions will be addressed in the magistral class and during office hours.

n The final exam will include questions related

to the material covered in the magistral class.

n Each class in reduced groups is the

continuation of a magistral.

n Some course material will be posted on line.

Practical Aspects II

n Problem Sets: web page and aula

global http://www.eco.uc3m.es/docencia/new_ju egos/en_home.html

n Office hours

Practical Aspects III

n BASIC REFERENCES:

q GARDNER, R. Games for Business and Economics. Wiley,

2003.

q GIBBONS, R. A Primer in Game Theory. Pearson, 1992.

n COMPLEMENTARY REFERENCES:

q BINMORE, K. Fun and Games. McGraw-Hill, 1994. q DIXIT, A y NALEBUFF, B. Thinking strategically. Norton,

1991

q VEGA, F. Game Theory and Economic Applications.

Cambridge University Press, 2001.