Game Theory
This course in designed as a brief introduction to individual decision making. Its main objective is to provide the students with basic game theory techniques that can be useful to face and understand, using logical reasoning, strategic situations that appear in all the areas of everyday life.
We will analyse our believe system and try to answer questions like: Where do our preferences come from? Are they stable? What could be the outcome of this situation? What can I do to get the best possible outcome for me given what by opponent is doing? This course will teach you how to transfer a problem into a game and try to predict its outcome.
Students in this course are expected to actively participate and show their opinion about the topics discussed. Each student will be asked at the end of the course to present a real-life problem, covert it into a game, predict what will be the outcome and compare it with the real life one. The knowledge obtained during those 3 weeks will improve your decision making.
Important Notice on Course Suitability and Activities:
Some Summer School courses are designed for students with prior academic background in a specific discipline and may be unsuitable for participants without that preparation.
In addition, certain courses include discipline-standard practical activities (for example, laboratory work with biological specimens, dissections, use of clinical or forensic material, field sampling, or other hands-on procedures) that may be unfamiliar or unsettling for some participants.
Students are responsible for reading the course descriptor carefully and ensuring (i) that they meet any stated academic expectations or prerequisites, and (ii) that they are comfortable participating in the methods and activities described.
If you are unsure about suitability, please contact the course lecturer(s) before enrolling.
| Week | Contents | Teaching/Learning Activities |
|---|---|---|
| 1 |
Introduction 1.Decision Theory Preferences Expected Utility Theory Decision Theory Value of information |
Theory classes, problem solving and discussions |
| 2 |
2. Game Theory Simultaneous games Nash Equilibrium Sequential Games Backward induction Subgame Perfect Nash Equilibrium |
Midterm Decision Theory, Theory classes, problem solving and discussions |
| 3 |
3. New approaches to the same problems Behavioural Economics Neuroeconomics |
Midterm Game Theory, Theory classes, problem solving and final presentations |
From Monday to Friday.
From 9 a.m. to 12:45 p.m.
Students' understanding of the material of the course will be evaluated using:
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4 Homeworks (the grade will not be taken into accounts it is a self-evaluation)
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30% of the Final Grade is Midterm covering the material in the first week of the course (Decision Theory), The Monday of the second course week.
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30% of the Final Grade is Midterm covering the material in the second week of the course (Game Theory), The Monday of the third course week.
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40% of the Final Grade is a Presentation the student will be asked to analyze a real-world problem using the techniques studied in class. Thursday and Friday of the 3rd week of the course.
The material needed for the course will be posted in Campus Virtual. However, you can read the following books to obtain additional information:
- Varian, H. R. (2010) Intermediate Microeconomics. A Modern Approach, W.W. Norton & Company
- Dixit, A. K. and Nalebuff, B. J. (1991) Thinking Strategically: The Competitive Edge in Business, Politics and Everyday Life, W.W. Norton & Company
- Dixit, A. K. and Nalebuff, B. J. (2008) The Art of Strategy: A Game Theorist's Guide to Success in Business and Life, W.W. Norton & Company
Ivanna Ferdinandova is Bulgarian. She obtained her PhD in UAB in 2003 in the field of Behavioural Economics, Game Theory and Computational Economics. Since then, she has been working in UPF, UAB and the Study Abroad program of UAB.