Game Theory 2 -- WS2007/08

040124 UK Spieltheorie 2

When and Where: Tue. 9-10:30am in Room 24; Thu. 1-2:30pm in Room 26 (main university building).
Starts: 2 October 2007
Target group: Advanced Economics students with special interest in Microeconomics and Game Theory.
Language: In English
Registration: Through PISWI.
Objectives: The main objective is to provide students with the tools necessary for the analysis of games in extensive form and games with incomplete information. These constitute the basis for many microeconomic applications; e.g. auctions, industrial organization, job market, public finance.
Contents: Bayesian games, auctions, Nash equilibrium refinements, signaling games, rationalizability, correlated equilibrium.
Prerequisites: Game Theory as offered in our Economics Bachelor's degree; foreign students or students who completed their Bachelor's at a different university are expected to have had a Microeconomics or Game Theory class at the level of Gibbons, A Primer in Game Theory, Chapters 1 to 3.
Format: The contents are mainly presented by the lecturer. At least one every three units is devoted to discussion of problems. Students are expected to actively participate in class, to solve and, if requested, to turn in problems. A one-hour tutorial to this lecture takes place regularly on Thu. 2:30-3:30pm in Room 26. The tutorial is led by Roman Kremlicka. Some of the problems will be discussed in detail during the turorial units. Students are encouraged to take part in the tutorial to prepare for the exams.
Grading: Written midterm (40% of the final grade) on 22 November and final exam (60% of the final grade) on 31 January. Additionally, problem sets and active participation in class also contribute to the final grade; this, however, cannot amount to more than 10% of the grade. A make-up exam comprising all the contents of this course for students who want to improve their grade will take place in SS2008 (date will be announced at the end of January).
Evalution: An electronic evalutation of the course will be possible towards the end of the semester. Students will receive an email with the instructions for evaluation. To make this evalution possible students are requested to keep their updated email address in ISWI.
Literature:
[1] Gibbons, A primer in Game Theory, FT Prentice Hall.
[2] Fudenberg & Tirole, Game Theory, MIT Press.
[3] Jehle & Reny, Advanced Microeconomic Theory, Addison Wesley.
[4] Myerson, Game Theory: Analysis of Conflict, Harvard University Press.
[5] Osborne & Rubinstein, A Course in Game Theory, MIT Press.
[6] Ritzberger, Foundations of Non-Cooperative Game Theory, Oxford University Press.

Materials		Announcements
Problem set 1	Preliminaries	Final grades are now available. Here is a list of grades after the makeup.
Problem set 2	Bayesian games
Problem set 3	Auctions
Problem set 4	Correlated equilibrium
Problem set 5	Perfect Bayesian equilibrium
Problem set 6	Signaling Games
Problem set 7	Sequential equilibrium
Problem set 8	Trembling-hand perfect
Mt WS2007/08	Midterm test
Fn WS2007/08	Final exam
Mu WS2007/08	Makeup exam