Game Theory for Business Strategy

Subject BUSA90491 (2014)

Note: This is an archived Handbook entry from 2014.

Credit Points: 12.50
Level: 9 (Graduate/Postgraduate)
Dates & Locations:

This subject has the following teaching availabilities in 2014:

May, Parkville - Taught on campus.
Pre-teaching Period Start not applicable
Teaching Period not applicable
Assessment Period End not applicable
Last date to Self-Enrol not applicable
Census Date not applicable
Last date to Withdraw without fail not applicable

Timetable can be viewed here. For information about these dates, click here.
Time Commitment: Contact Hours: 30 hours
Total Time Commitment: Not available
Prerequisites: None
Corequisites: None
Recommended Background Knowledge: None
Non Allowed Subjects: None
Core Participation Requirements:

For the purposes of considering request for Reasonable Adjustments under the Disability Standards for Education (Cwth 2005), and Student Support and Engagement Policy, academic requirements for this subject are articulated in the Subject Overview, Learning Outcomes, Assessment and Generic Skills sections of this entry.

It is University policy to take all reasonable steps to minimise the impact of disability upon academic study, and reasonable adjustments will be made to enhance a student's participation in the University's programs. Students who feel their disability may impact on meeting the requirements of this subject are encouraged to discuss this matter with a Faculty Student Adviser and Student Equity and Disability Support:

Subject Overview:

Managers make decisions day in, day out. These decisions affect others both within the firm, such as other divisions and subordinates, etc., as well competitors, customers, regulators, and even capital markets. Moreover, the outcome of these decisions depends on the decisions of others. Therefore, anticipating the reaction of others is essential for making the best decision and reaching a successful outcome. This course introduces basic tools to analyze such choices: concepts of individual decision-making and of strategic interaction (game theory). A combination of these tools will lead students to approach managerial problems critically and analytically. As a result, students will be able to think strategically in complex, interactive environments.

Learning Outcomes:

On completion of this subject, students should be able to:

  • think strategically in interactive environments;
  • understand how game theory can be used to anticipate market dynamics;
  • understand the foundations of bargaining and negotiation theory;
  • understand how game theory can be used to design efficient auctions and tenders;
  • understand strategic importance of asymmetric information.
  • Contribution to class learning (10%)
    • Throughout subject
  • 4 problem sets (60%)
    • Throughout subject
  • Final examination (30%)
    • Hurdle requirement
    • End of subject
Prescribed Texts: None
Breadth Options:

This subject is not available as a breadth subject.

Fees Information: Subject EFTSL, Level, Discipline & Census Date
Related Course(s): Master of Business Administration
Master of Business Administration

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