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Single discipline educational activity
Course Sheet Academic Year of enrolment:
Professor and Collaborators:
Hours of classroom activity:
Prerequisites:
Microeconomics, Set Theory
Objectives
Contents • Part One: Static games with complete information
1.1. Representation of games in normal form; 1.2. Iterated elimination of strictly dominated strategies; 1.3. Motivation and definition of Nash equilibrium; 2.1. The Cournot duopoly model; 2.2. Bertrand's duopoly model (for b = 1); 3.1. Mixed strategies; 3.2. Existence of Nash equilibrium.
• Second part: Dynamic games with complete information
1.1. Theory: "backward induction"; 1.2. Stackelberg's duopoly model; 2.1. Theory: perfection in subgames; 2.2. The bank run; 3.1. Theory: Two-stage repeated games; 3.2. Theory: Infinitely repeated games; 3.3. Collusion between oligopolysts in the model of Cournot; 4.1. Representation of games in extended form; 4.2. Perfect Nash equilibrium in subgames.
• Third part: Static games with incomplete information
Outline: representation in normal form, Bayesian Nash equilibrium, Cournot duopoly with incomplete information, bank run with incomplete information.
• Part Four: Dynamic games with incomplete information
Outline: perfect Bayesian Nash equilibrium, signaling games.
Extended Syllabus • Part One: Static games with complete information
1.1. Representation of games in normal form; 1.2. Iterated elimination of strictly dominated strategies; 1.3. Motivation and definition of Nash equilibrium; 2.1. The Cournot duopoly model; 2.2. Bertrand's duopoly model (for b = 1); 3.1. Mixed strategies; 3.2. Existence of Nash equilibrium.
• Second part: Dynamic games with complete information
1.1. Theory: "backward induction"; 1.2. Stackelberg's duopoly model; 2.1. Theory: perfection in subgames; 2.2. The bank run; 3.1. Theory: Two-stage repeated games; 3.2. Theory: Infinitely repeated games; 3.3. Collusion between oligopolysts in the model of Cournot; 4.1. Representation of games in extended form; 4.2. Perfect Nash equilibrium in subgames.
• Third part: Static games with incomplete information
Outline: representation in normal form, Bayesian Nash equilibrium, Cournot duopoly with incomplete information, bank run with incomplete information.
• Part Four: Dynamic games with incomplete information
Outline: perfect Bayesian Nash equilibrium, signaling games.
Recommended Bibliography [1] R. Gibbons, Game Theory, Ed. Il Mulino (1994).
Methods of Provision
Teaching Methods
Evaluation methods Verification of learning:
Written test.
Partial tests .
The evaluation is the sum of the grades reported in the every exercises carried out in the test.
Contacts/More Information