Game Theory (Econ375)

Syllabus





Instructor: Professor Stefan Krasa

Office Hours: Tuesday and Thursday, 11:20-12:10pm, or by appointment.

Phone: 333-7698

E-mail: skrasa@uiuc.edu

Office: 315 Wohlers Hall

 

Course Objective: To provide a mathematical rigorous introduction to non-cooperative and cooperative game theory, with an emphasis on applications in Economics.

Prerequisites: Differential Calculus and some basics of Probability Theory.

Text books: In Introduction to Game Theory Martin J. Osborne

Examinations:

  • Mid-term examination on Thursday, March 4 (during the regular class time in 24 Wohlers Hall). You should consider this date to be firm and put it in your schedule. If there is a change, it will be announced sufficiently in advance. The maximum score on the midterm is 100 points.
  • Final examination on Monday, May 10, 1:30pm-4:30pm. The final exam is in 24 WH (the regular classroom). The maximum score on the final is 100 points.
  • Homework will be posted periodically. Homework will be graded. The maximum score on each homework is between 3 and 5 points.

    You can choose to do the homework in teams of up to three students. Each team submits one copy of the homework that lists all the team members. The relative contribution of each team member will be evaluated at the end of the course. Once you have chosen to work in a particular team, you cannot change the team without my explicit permission. Discussing homework questions before the due date with students of other teams is not allowed. Obviously, copying is not allowed either. Thus, if you want to discuss homework questions with other students, then you should join a team.

Course Content:

  1. Games with Perfect Information:
    1. Nash Equilibrium, Dominanted Actions
    2. Applications: Firm Competition (Oligopoly), Voting, Auctions
    3. Mixed Strategy Equilibrium
    4. Extensive Games: Subgame Perfect Equilibria
    5. Applications: Stackelberg Duopoly, Industry Dynamics, Strategic Voting:
    6. Coalitional Games and the Core
  2. Games with Imperfect Information:
    1. Bayesian Games
    2. Applications: Duopoly with Imperfect Information, Provision of Public Goods, Auctions
    3. Extensive Games with Imperfect Information

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