The theory of games helps us to understand situations where many agents interact in a strategic setting, where each agent's wellbeing depends on the behaviour of all agents. Game theory is a collection of analytic techniques widely used in many sciences. It has provided powerful tools that have successfully been applied in almost every field of economics and in many other disciplines, as well as creative and rigorous ways of developing new ideas and applications. The course covers a range of topics in advanced game theory, including current research topics. It is the natural continuation of ECON2141/2142/8053 Strategic Thinking: An Introduction to Game Theory.

Upon successful completion of the requirements for this course, students will be able to:

• Understand selected models and concepts of game theory
• Understand articles that use intermediate and applied game theory
• Produce simple economic models with basic game theory
• Think strategically in many situations

Students taking this course are expected to commit at least 12 hours a week comprised of:

• 3 hours of lectures and,
• 1 hour of tutorial, and
• 8 hours of private study.
• (Recommended and Optional) Study groups to be organized by students, if they wish.

This course requires attendance at classes due to the interactive nature of the course. To achieve the learning outcomes points are awarded for class participation and student presentations.

An honours degree in Economics with H2A or higher, or completion of a Graduate Diploma in Economics with an exit grade of Merit or better.

During the course, students are expected to be able to follow rigorous abstract arguments, as used in the construction and analysis of mathematical models in economics. Some prior knowledge of game theory is required, such as Nash equilibrium, subgame perfection and various game forms. Students who are interested in learning game theory, but have not taken either ECON8011 Microeconomic Theory A or an introductory game theory course, should instead enrol in ECON8053 Strategic Thinking: An Introduction to Game Theory or its equivalent.

ECON2141/ECON2142/ECON8053 Strategic Thinking: An Introduction to Game Theory (P), ECON2142 Strategic Thinking: An Introduction to Game Theory (H) or ECON8053 Strategic Thinking: An Introduction to Game Theory.

Corequisite: ECON8013 Mathematical Techniques for Economics I

Martin Osborne, An Introduction to Game Theory, Oxford University Press, 2004.

Mas-Colell, A., M. D. Whinston and J. R. Green, Microeconomic Theory, Oxford University Press, 1995.

Please see Course Website