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# ECON20100

#### Game Theory (ECON20100)

Subject:
Economics
College:
Social Sciences & Law
School:
Economics
Level:
2 (Intermediate)
Credits:
5
Module Coordinator:
Dr Tiziana Brancaccio
Trimester:
Spring
Mode of Delivery:
On Campus
Internship Module:
No

Curricular information is subject to change.

Game theory is a formal way of thinking about and analysing strategic situations. This module will provide the tools that will enable you to use game theory to analyse a range of different problems.
Through the analysis of many examples in a variety of contexts you will
1. learn how to take into account strategic interactions when making your own choices;
1. learn how to predict other people or organizations' behaviour when they are in strategic settings;
3. learn how to apply these tools to settings from economics and other disciplines.

This module may be taken as part of a Structured Elective in Economics. This means that if you combine this module with at least 10 additional credits from other economics modules you will be awarded a ‘structured elective in economics’ on your transcript. See https://www.ucd.ie/students/registration/structuredelectives/ for details.

###### Learning Outcomes:

On successful completion of this module, students should have:
1-An understanding of basic game theory concepts;
2-An ability to apply these tools to various real life and economic settings.

###### Indicative Module Content:

Week 1: Basic concepts of game theory
Weeks 1-2: Simultaneous move games with pure strategies
- Constructing payoffs matrices
- Identify equilibria (Best response analysis, Dominance)
- Particular classes of games (constant-sum games, prisoner’s dilemma games, coordination games)
Weeks 3-4: Sequential Games
- Definitions and game tree representation
- Solving games (sub-game perfect NE)
- From game tree to matrix payoff: NE vs SPNE
- Games with more than 2 players
- Order of moves: first/second mover advantage
- Stage games
Week 5-6: Simultaneous move games with mixed strategies
- Evolutionary game theory
Week 7: Strategic moves
Week 8: Repeated games
Week 9: Static Bayesian Games
Week 10: Dynamic Bayesian Games
Weeks 11 - 12 Adverse selection, Signalling and Screening

###### Student Effort Hours:
Student Effort Type Hours
Lectures

33

Autonomous Student Learning

80

Total

113

###### Approaches to Teaching and Learning:
The module comprises lectures and tutorials.
Students will be given regular problem sets to facilitate self-assessment and group work. Detailed solutions will be provided to all problem sheets, and tutor will go over them during the tutorials.
Some of the tutorials will be used to conduct class experiments to facilitate a deeper understanding of how decisions are made in strategic situations.

Given the nature of the assessments (closed book in presences exams), AI cannot be used to complete assessments.
AI can be used to aid learning in this module in the following ways:
- to obtain relevant references
- to find definitions, explanations of concepts/theories
###### Requirements, Exclusions and Recommendations
Learning Recommendations:

It is recommended but not required that students take this module after Introduction to Economics, Principles of Micro or Microeconomics for Business so as to have some knowledge of basic microeconomics principles.

###### Module Requisites and Incompatibles
Incompatibles:
ECON2004J - Game Theory (J)

Equivalents:
Game Theory (ECON27100)

###### Assessment Strategy Invalid Option
Description Timing Component Scale Must Pass Component % of Final Grade In Module Component Repeat Offered
Quizzes/Short Exercises: Midterm Examination Week 8 Alternative linear conversion grade scale 40% No
30
No
Exam (In-person): Final Examination End of trimester
Duration:
2 hr(s)
Alternative linear conversion grade scale 40% No
70
No

###### Carry forward of passed components Invalid Option
No

Resit In Terminal Exam
Autumn No
###### Feedback Strategy/Strategies

• Group/class feedback, post-assessment
• Online automated feedback
• Self-assessment activities

###### How will my Feedback be Delivered?

1. Regular problem sets will be assigned throughout the semester for self-assessment; solutions will be posted on Brightspace and will be explained in detail during tutorials. 2. Solutions to midterm examination will be posted on Brightspace within 20 working days from the date of the midterm, and those students who wish to go over their midterm will be given an appointment for individual feedback.

Core textbooks:
A. Dixit, S. Skeath, & D. Reiley. Games of Strategy, Norton
F. Carmichael, A Guide to Game Theory, Prentice Hall