Bargaining Theory
2nd Semester, Course Code: ΜΕΧΘ15
Credits: 8
Learning Outcomes
This course presents the core ideas of bargaining theory using game theory. A better understanding of the modern economy necessitates using a modern microeconomic toolkit that includes the apparatus of game theory. Undoubtedly, individual behavior rests upon the incentives, and game theory provides the analysis for the revelation of the underlying incentives and the prediction of strategic behavior in a bargaining context. The course aims to develop the necessary skills and the perception to address bargaining problems in a broader sense.
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 law and economics.
- assess the microeconomic foundations of economic phenomena in a strategic setting
- undertake strategic decisions in legal situations.
General Competences
- Decision making,
- Working independently,
- Teamwork,
- Production of new research ideas
Course Content
- A crash course in game theory I, Strategic Games – Nash Equilibrium, Strategic Dominance (lecture notes)
- A crash course in game theory II, Extensive games, Backward Induction, Subgame Perfect Nash Equilibrium (lecture notes)
- Economic versus legal rationality, Preferences, collective preferences and paradoxes (lecture notes and Cicace ch.5)
- A game theoretic framework of Civil Obligation (Cirace ch.17-18)
- Incomplete information, the Principal-Agent model (Cirace ch.16)
- A crash course in game theory III, Cooperative Games – The Core, Cost allocation games (lecture notes)
- Bargaining theory, Strategic bargaining (Baird et. al. ch.7, ch.8)
- A bargaining version of the Coase theorem (Cirace ch12)
Student Performance Evaluation
Essay writing/Presentation 40%
Final exam 60%
Bibliography
Suggested Bibliography
- Voliotis, D., Lecture Notes (in Greek)
- Cirace, J., Law Economics and Game Theory, The Rownman & Littlefield Publishing Group, 2018
- Baird D. et. al., Game Theory and the Law, Harvard University Press 2018
Related Academic Journals