Αpplied Microeconomics - Game Theory
Full Time// 3rd Semester, Course Code: ΜΕΧΡΗ217
Part Time // 3rd Semester, Course Code: ΜΕΧΡΗ-Μ217
Credits: 6
Learning Outcomes
This course presents the core ideas of game theory. Game theory provides a logical apparatus designed to help us understand the decision-making if economic agents interact. The game theory models are highly abstract; therefore, the domain of applications is vast. Here we present the main toolkit of game theory and its application in fundamental issues of microeconomic theory.
With the successful completion of the course, students will be sufficiently capable to:
- comprehend game theory techniques in a generic decision-making environment.
- read the academic results critically in top-tier journals of economics.
- assess the microeconomic foundations of economic phenomena in a strategic setting
- undertake strategic decisions in real-life situations.
General Competences
- Decision making,
- Working independently,
- Production of new research ideas
Course Content
- Strategic Games – Nash Equilibrium, Strategic Dominance, Mixed-Strategy equilibrium, Bayesian Games in strategic form, Pre-Play Communication, Correlated Equilibrium
- Extensive Games – Sequential Decision Games with complete information, Backward Induction, Subgame Perfect Nash Equilibrium, Games with Incomplete Information, Sequential Equilibrium, Games with Imperfect Information, Bayesian Nash Equilibrium, Forward Induction, Screening Games.
- Repeated Games – Repeated Games with Perfect Recall, Repeated Games with Discounting, Folk Theorem, Strategies as Automata.
- Bargaining Theory – Nash Solution, Other forms of solution.
- Cooperative Games – The Core, The Shapley value, The Bargaining Set
Student Performance Evaluation
- Problem Solving 40%
- Final exam 60%
Bibliography
Suggested Bibliography
- Βολιώτης Δημ. Διαλέξεις στην Θεωρία Παιγνίων. Πληροφορία και Λήψη Αποφάσεων. Εκδόσεις Πεδίο, 2015
- Felix Munoz-Garcia and Daniel Toro-Gonzalez, Strategy and Game Theory. Practice Exercises with Answers, Springer, Second Edition, 2019
Related Academic Journals
Master of Science (M.Sc.) in
«Banking and Finance»
Specialization in
«Banking and Financial Management»