Game Theory

This subject has the following teaching availabilities in 2016:

Estimated total time commitment of 120 hours per semester

or

ECON40010 Game Theory

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: http://services.unimelb.edu.au/disability

The subject provides a rigorous introduction to non-cooperative game theory and the economics of asymmetric information. The equilibrium concepts covered include dominant strategy, Nash, subgame perfect, Bayesian and perfect Bayesian equilibrium.

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

• Explain and apply strategic games of complete information, extensive games with perfect information, static games of incomplete information;
• Recognise and critically evaluate the applications of game-theoretic models within economics;
• Use these analytical tools to understand situations where decision-makers interact.

• 1.5 hour mid-semester examination and one 2-hour end-of-semester examination (totalling 70% and split between the midterm and the final as the maximum of 10% for the midterm plus 60% for the final and 30% for the midterm plus 40% for the final); and
• Five 600-word homework assignments (6% each) due in weeks 3, 5, 7, 9 and 12

You will be advised of prescribed texts by your lecturer.

This subject is not available as a breadth subject.

On successful completion of this subject, students should have improved the following generic skills:

• Evaluation of ideas, views and evidence
• Synthesis of ideas, views and evidence
• Strategic thinking
• Critical thinking
• Application of theory to economic policy and business decision making
• Negotiation and bargaining
• Written communication
• Oral communication