Game Theory

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Course Name: Game Theory

Teachers: Dimitrios Voliotis

School: Finance and Statistics

Department: Banking and Financial Management

Level: Undergraduate

Course ID: ΧΡΜΘΠ02 Semester: 6th & 8th

Course Type: Elective Course – Special Background

Prerequisites: –

Teaching and Exams Language: Greek

Course Availability to Erasmus Students: Yes (in Greek)

Specific Teaching Activities

Weekly Teaching HoursCredit Units

Course Content

1) Introduction to static games. Analytical presentation of games -minimax theorem -regret strategies – Mixed strategies – Nash equilibrium -Examples

2)Rationality beyond Nash equilibrium. Dominant strategies – Iterative deletion of dominated strategies –  Domination by mixed strategies – Rationalizability

3) Perfect equilibrium. Refinement of Nash equilibrium

4) Risk and Bayesian decisions. The Harsanyi doctrine – Static Bayesian games

5) Games with communication.  Games with contracts – Correlated equilibrium – cheap talk games

6) Games with sequential decisions. Analytical presentation of tree games – reduction of a tree game to a table – Subgames – Backward induction – Subgame Perfect Nash equilibrium

7) Tree games under risk and uncertainty.  Sequential equilibrium – Bayes Nash and subgame Bayes Nash equilibrium

8) Repeated games. The folk theorem – Strategies as automata

9) Bargaining theory.  Nash solution – Other suggested solutions

10) Cooperative games.  The core – The Shapley value – The bargaining set

Teaching Results

This course aims at the presentation of game theory as a analytical toolkit of modern microeconomics. Game theory is founded on the axiomatization of decision theory, which extends to incorporate decision makers that interact each other. In fact, objective of game theory is to investigate the role of this interaction in the formation of decision outcomes.

The inefficiency of modern markets in real economy as well as in finance is attributed to a large extent to the strategic behavior of economic agents, hence game theory becomes a very fundamental tool for the understanding and prediction of market conditions. Upon completion of this course students will be able to understand the strategic behavior in the economy and to interpret various economic phenomena with strategic interaction.


• Individual Work
• Decision Making
• Advancement of Inductive Thinking

Teaching and Learning Methods - Evaluation

Lecture: Face-to-Face teaching

Use of Information and Communication Technologies: E-class platform support

Teaching Analysis: 


Semester Workload
Autonomous Study98

Student Evaluation:

  • Written Final Exam, which includesι:
    • short-answer  questions
    • problem-solving questions

Recommended Bibliography

• Δημήτρης Βολιώτης. Διαλέξεις στην θεωρία παιγνίων, (2015). Εκδόσεις Πεδίο
• Γιάνης Βαρουφάκης. Θεωρία παιγνίων, (2007), Εκδόσεις Gutenberg