Game Theory and Applications

Course Code: 
Specialization Courses
A. International Economics and Finance

Type of course: Compulsory for the specialization “International Economics & Finance”

Number of credits allocated: 6 ECTS Credits

Expected learning outcomes and competences to be acquired

  • Understanding the usefulness of game theory and its notions in the analysis of strategic environments
  • Ability to employ game theoretic analytical tools to solve strategic problems
  • Apply game theoretic tools in the analysis of various economic applications, such as oligopoly, bargaining, auctions, etc.

Prerequisites: None            

Course contents

  • General introduction
  • Normal form representation of games and the notion of dominance
  • Nash equilibrium in pure and mixed strategies II
  • Extensive form representation of games
  • Backwards induction and subgame perfect equilibrium
  • Bargaining
  • Repeated games
  • Games of incomplete information (Bayesian games)
  • Dynamic games of incomplete information (Signaling games)

Recommended reading

  •    Robert Gibbons (1992), A Primer in Game Theory, Harvester Wheatsheaf: London (This is the main textbook of the course)
  •    Drew Fudenberg and Jean Tirole (1991), Game Theory, MIT Press (This is a much more rigorous and technical introduction to game theory. It is only proposed as a reference to those who want to get a more in-depth look at the subject.)
  •    David Kreps (1990), Game Theory and Economic Modelling, Oxford University Press (This is a nice monograph which discusses the strengths and limitations of applying game theory to economic problems.)

Teaching methods: Lectures and distribution of take-home problem sets

Assessment methods: Final written exam

Language of instruction: Greek or English