Applied Game Theory-E2

Numbering Code U-LAS06 10020 LE43 Year/Term 2022 ・ Second semester
Number of Credits 2 Course Type Lecture
Target Year Mainly 1st year students Target Student For all majors
Language English Day/Period Wed.3
Instructor name ZHOU YU (Graduate School of Economics Program-Specific Senior Lecturer)
Outline and Purpose of the Course This course is to help students understand basic solution concepts, acquire the basic analytical tools in the applied game theory, and understand stylized applications of applied game theory. It may also get across with some knowledge of mechanism design and market design. This course covers a number of important applications in both game theory and market design such as signaling game, cheaper talk game, repeated game, marriage market matching, and auction.
Course Goals ・Understand the key concepts and models in the applied game theory
・Mastering the ability to use game theoretical models to analyze practical issues
Schedule and Contents The lectures will be organized as follows.

1. Introduction to game theory I: strategic reasoning
2. Introduction to game theory II: building a strategic model
3. Nash equilibrium in the discrete game
4. Nash equilibrium in the continuous game
5. Sequential game with perfect information I: Theory
6. Sequential game with perfect information II: Application
7. Sequential game with imperfect information I: Theory
8. Sequential game with imperfect information II: Application
9. Game with private information
10. Signaling game
11. Repeat game
12. Nash bargaining and Rubinstein bargaining
13. Marriage and college admission
14. Auction in practice

Total: 14 classes and 1 feedback
Evaluation Methods and Policy Class participation (20%)
Homework (30%)
Final examination (50%)
Course Requirements Basic calculus
Study outside of Class (preparation and review) Students will be assigned three problem sets as the homework
Textbooks Textbooks/References Games, strategies and decision making (Second Edition), Harrington, Joseph, (Worth Publishers, 2014), ISBN-10:1429239964
References, etc. Game theory: A Multi-leveled approach, Peters, Hans, (Springer, 2015), ISBN:978-3-662-51877-9
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