At the end of this course, the students; 1) become familiar with the use of game theory models used in economics. They understand nash equilibrium, subgame perfect equilibrium, bargaining, repeated games and dynamic competition, bayesian nash equilibrium, auctions and perfect bayesian equilibrium in economic problems. 2) become familiar with the game theoretic solution and analysis methods used in game theory models. They understand oligopoly, time-consistent macroeconomic policy, bargaining, auctions, and solution of similar game theoretic problems.
MODE OF DELIVERY
Face to face
PRE-REQUISITES OF THE COURSE
No
RECOMMENDED OPTIONAL PROGRAMME COMPONENT
None
COURSE DEFINITION
This course mainly introduces the students graduate level game theory and strategic thinking. Subjects such as dominance, backward induction, Nash equilibrium, commitment, credibility, asymmetric information, and reputation are discussed. Beside, these issues are applied to games in the classroom experiments. During the course main examples are drawn particularly from economics, but also politics, and everyday life.
COURSE CONTENTS
WEEK
TOPICS
1st Week
Introduction to Game Theory
2nd Week
Static games of complete information and Nash equilibrium
3rd Week
Static games of complete information: Applications
4th Week
Mixed Strategies
5th Week
Dynamic games of complete and perfect information
6th Week
Repeated games
7th Week
Dynamic games of complete but imperfect information
8th Week
Mid-Term
9th Week
Static games of incomplete information: Bayesian Nash Equilibrium
10th Week
Static games of incomplete information: Applications
11th Week
Dynamic games of incomplete information: Perfect Bayesian Nash equilibrium
12th Week
Signaling games
13th Week
Dynamic games of incomplete information: Other applications
14th Week
Behavioral game theory
RECOMENDED OR REQUIRED READING
Robert Gibbons, Game Theory for Applied Economists, 1992.
PLANNED LEARNING ACTIVITIES AND TEACHING METHODS
Lecture,Discussion,Problem Solving
ASSESSMENT METHODS AND CRITERIA
Quantity
Percentage(%)
Mid-term
1
40
Assignment
1
10
Total(%)
50
Contribution of In-term Studies to Overall Grade(%)
50
Contribution of Final Examination to Overall Grade(%)
50
Total(%)
100
ECTS WORKLOAD
Activities
Number
Hours
Workload
Midterm exam
1
2
2
Preparation for Quiz
Individual or group work
14
5
70
Preparation for Final exam
1
70
70
Course hours
14
3
42
Preparation for Midterm exam
1
60
60
Laboratory (including preparation)
Final exam
1
2
2
Homework
1
55
55
Total Workload
301
Total Workload / 30
10,03
ECTS Credits of the Course
10
LANGUAGE OF INSTRUCTION
Turkish
WORK PLACEMENT(S)
No
KEY LEARNING OUTCOMES (KLO) / MATRIX OF LEARNING OUTCOMES (LO)