Game Theory and Applications

    Course Code: 
    4123
    Semester: 
    5th
    Specialization Courses
    A. International Economics and Finance
    Professor: 

    PECHLIVANOS LAMBROS

    Type of course: Compulsory for the specialization “International Economics & Finance”

    Number of credits allocated: 6 ECTS Credits

    Expected learning outcomes and competences to be acquired

    • Understanding the usefulness of game theory and its notions in the analysis of strategic environments
    • Ability to employ game theoretic analytical tools to solve strategic problems
    • Apply game theoretic tools in the analysis of various economic applications, such as oligopoly, bargaining, auctions, etc.

    Prerequisites: None            

    Course contents

    • General introduction
    • Normal form representation of games and the notion of dominance
    • Nash equilibrium in pure and mixed strategies II
    • Extensive form representation of games
    • Backwards induction and subgame perfect equilibrium
    • Bargaining
    • Repeated games
    • Games of incomplete information (Bayesian games)
    • Dynamic games of incomplete information (Signaling games)

    Recommended reading

    • Robert Gibbons (1992), A Primer in Game Theory, Harvester Wheatsheaf: London (This is the main textbook of the course)
    • Drew Fudenberg and Jean Tirole (1991), Game Theory, MIT Press (This is a much more rigorous and technical introduction to game theory. It is only proposed as a reference to those who want to get a more in-depth look at the subject.)
    • David Kreps (1990), Game Theory and Economic Modelling, Oxford University Press (This is a nice monograph which discusses the strengths and limitations of applying game theory to economic problems.)

    Teaching methods: Lectures and distribution of take-home problem sets

    Assessment methods: Final written exam

    Language of instruction: Greek or English