Level of Study
Objectives and Content
This course will cover the models and tools from the field of game theory, and will introduce students to a host of applications of game theory. The goal will be to provide students with an advanced level of knowledge and understanding of the modeling of strategic situations. To enhance students' understanding of the different theories, special attention will be paid to teaching relevant applications.
An overview of the (preliminary) topic structure of the course:
- Static games of complete information
- Dynamic games of complete information
- Static games of incomplete information
- Dynamic games of incomplete information
- Cooperative game theory
- Interpretations and Refinements of equilibrium concepts
- Modeling of bounded rationality and learning in games
- Psychological (behavioral) game theory
Throughout the course, students are introduced to many real-life applications of game theory such as in the fields of (preliminary):
- Industrial organization and competition policy
- Employer-employee relationships and contracts
- Labor market decisions, (wage bargaining, competence signaling)
- Corporate capital structures and investment decisions
- Monetary policy
- Online platforms and market places
- Ai and Machine learning
A student who has completed the course should have the following learning outcomes:
The student will
- understand main and advanced results from the theory of economic games and asymmetric information
- be acquainted with applications of these theories to a variety of real world problems
The student will
- be able to formulate different strategic situations in terms of game theoretic models
- be able to solve for equilibrium outcomes of different types of strategic situations
- be able to interpret how the existence, stability and characteristics of an equilibrium outcome depend on parameters and elements of a strategic situation
- be able to criticize and recognize (possibly testable) shortcomings of the presented game theoretical models
The student will
- Significantly increase the ability to think analytically and tackle complex problems
- manage to recognize and formulate precise questions about strategic situations and understand the theoretical tools to address these questions.
Required Previous Knowledge
Recommended Previous Knowledge
Credit Reduction due to Course Overlap
Access to the Course
The course is oriented towards students in the Master´s Programme in Economics or Professional Studies in Economics, but is open to visiting students upon approval of student request.
Teaching and learning methods
The course will consist of 16-18 lectures of two hours (including breaks). Next to this, there will be several two-hour exercise seminars where the students are time to work on selected exercises. Further information about exercises will follow in the course.
Compulsory Assignments and Attendance
Students will have to make and hand in one pass/fail assignment in groups of 2 - 3. Approved compulsory requirements do not have time limits.
Compulsory assignments that are not accepted on the first try, may be handed in a second time. To be able to get this opportunity, the student must have made a sincere effort the first time around; that is, the student must have tried to answer most of the assignment.
Forms of Assessment
4 hours written exam
Examination Support Material
Mathematical Formula Collection of K Sydsæter, A. Strøm and P. Berck or Mathematical Formulas for Economists of B Luderer, V. Nollau and K. Vetters and calculator. The following simple, non-programmable calculators without graphical display are allowed to be used for written tests:
All models of the type:
- Casio FX-82, Casio FX-82ES PLUS or Casio FX-82EX
- Hewlett-Packard HP30
- Texas Instruments TI-30
The Department of Economics can conduct a sample of aids in the examination room.
Graded A - F
Assessment in teaching semester. New exam the following semester only for students who have a valid document of absence.
The reading list will be ready before 1 Decemeber for the spring semester.
All courses are evaluated according to UiB's system for quality assurance of education.
The Programme Committee is responsible for the content, structure and quality of the study programme and courses.
Course coordinator and administrative contact person can be found on Mitt UiB.
The Department of Economics at the Faculty of Social Sciences has the administrative responsibility for the course and the study programme.
Department of Economics