At the end of this course, the students; 1) Become familiar with the use of game theory models used in economics. 2) Understand static and dynamic games, Nash equilibrium, Bayesian Nash equilibrium, perfect Bayesian Nash equilibrium, auctions and bargaining theories. 3) Learn how to apply game theory tools (Cournot, Bertrand, Stackelberg models and Hotelling location model) in oligopolistic markets.
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 elementary game theory and strategic thinking. Subjects such as dominance, backward induction, Nash equilibrium, commitment, credibility, asymmetric information, and reputation are discussed. Besides these issues are applied to games played in the classroom. 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
Main concepts and basic assumptions
3rd Week
Dynamic games of complete information
4th Week
Static games of complete information
5th Week
Coordination games
6th Week
Oligopolistic markets and Nash equilibrium
7th Week
Mixing dynamic and static games
8th Week
Midterm
9th Week
Mixed strategies
10th Week
Risk, uncertainty and asymmetric information
11th Week
Static and Dynamic games of incomplete information
12th Week
Repeated games
13th Week
Strategic moves
14th Week
Auction theory and bargaining theory
RECOMENDED OR REQUIRED READING
A. Dixit, S. Skeath & D. McAdams (2021), Games of Strategy, 5. Edition, W. W. Norton & Company J. E. Harrington (2015), Games, Strategies and Decision Making, 2. Edition, Worth Publishers E. Yılmaz (2009), Oyun Teorisi, 2. Basım, Literatür Yayınları
PLANNED LEARNING ACTIVITIES AND TEACHING METHODS
Lecture,Discussion
ASSESSMENT METHODS AND CRITERIA
Quantity
Percentage(%)
Mid-term
1
40
Quiz
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
1
1
Preparation for Quiz
1
9
9
Individual or group work
14
3
42
Preparation for Final exam
1
30
30
Course hours
14
3
42
Preparation for Midterm exam
1
25
25
Laboratory (including preparation)
0
0
0
Final exam
1
1
1
Homework
0
0
0
Total Workload
150
Total Workload / 30
5
ECTS Credits of the Course
5
LANGUAGE OF INSTRUCTION
Turkish
WORK PLACEMENT(S)
No
KEY LEARNING OUTCOMES (KLO) / MATRIX OF LEARNING OUTCOMES (LO)
