Game Theory
| Module title | Game Theory |
|---|---|
| Module code | BEE2044 |
| Academic year | 2024/5 |
| Credits | 15 |
| Module staff | Professor Todd Kaplan (Lecturer) |
| Duration: Term | 1 | 2 | 3 |
|---|---|---|---|
| Duration: Weeks | 11 |
| Number students taking module (anticipated) | 200 |
|---|
Module description
Game theory, the mathematical theory of interactive decision making, has significantly changed how economists think and model economic problems. It has been similarly influential in the political sciences, biology, computer sciences and philosophy. It provides a methodology for analysing the strategic aspects of situations of conflict and cooperation. The module will develop further what students have learned about the subject in intermediate microeconomics. Throughout, a wide range of examples will be used to introduce game theoretic core concepts and ideas and illustrate their applications to economics and political sciences.
Additional Information:
Internationalisation
The whole content of this module is a neutral methodology which is applicable across disciplines and across geographic or national boundaries.
Sustainability
All the resources for this module are available on the ELE (Exeter Learning Environment).
Employability
Strategic and critical and thinking and an understanding how incentives work are essential are essential for working operating professionally in practically any economic activity or institution (in the financial or labour markets) and any social or political institutions (such as parliaments, local councils, committees, boards of directors etc.) whether in the public or private sector.
Research in Teaching
The module is taught by active researchers in game theory who will bring their experience and expertise to the various topics taught in class.
Module aims - intentions of the module
The module builds on the basic game theory as it is taught in introductory and intermediate microeconomics modules and develops it further. It provides a more thorough discussion of basic and more advanced game theoretic concepts.
Intended Learning Outcomes (ILOs)
ILO: Module-specific skills
On successfully completing the module you will be able to...
- 1. explain clearly how game theory can be used to model and analyse interactive decision situations involving several decision makers;
- 2. demonstrate comprehensive and detailed knowledge and understanding of the main topics in game theory.
ILO: Discipline-specific skills
On successfully completing the module you will be able to...
- 3. explain how game theory is a useful tool in many economic sub disciplines;
- 4. explain how incentives matter and affect behaviour
ILO: Personal and key skills
On successfully completing the module you will be able to...
- 5. effectively communicate concepts/definitions/arguments;
- 6. use strategic analysis to understand situations of conflict and cooperation.
Syllabus plan
The following syllabus is indicative:
Strategic Games with Complete Information
- Iterated elimination of dominated strategies;
- Nash equilibrium;
- Maximin
Dynamic Games with Complete Information
- Nash equilibrium in sequential games.
- Refinements: Subgame perfect equilibrium
Applications of SPE: Drafts.
Matching
- Gale-Shapley, Deferred Acceptance Algorithm
- Top Trading Cycles.
Correlated Equilibrium
Games with Incomplete Information
Learning activities and teaching methods (given in hours of study time)
| Scheduled Learning and Teaching Activities | Guided independent study | Placement / study abroad |
|---|---|---|
| 27 | 123 | 0 |
Details of learning activities and teaching methods
| Category | Hours of study time | Description |
|---|---|---|
| Scheduled Learning & Teaching | 22 | Lectures (11 x 2 hours) |
| Scheduled Learning & Teaching | 5 | Tutorials (10 x 1 hour) |
| Guided Independent Study | 123 | Reading, research and reflection, preparation for tutorials; preparation for mid-term test and examination |
Formative assessment
| Form of assessment | Size of the assessment (eg length / duration) | ILOs assessed | Feedback method |
|---|---|---|---|
| Tutorial questions | In class | 1-6 | In class feedback |
Summative assessment (% of credit)
| Coursework | Written exams | Practical exams |
|---|---|---|
| 0 | 100 | 0 |
Details of summative assessment
| Form of assessment | % of credit | Size of the assessment (eg length / duration) | ILOs assessed | Feedback method |
|---|---|---|---|---|
| Home Mid-Term | 10 | Ten questions to be answered on own time | 1-6 | Verbal feedback and indicative answers |
| Homework (in groups) | 20 | One computer-based exercise and one essay 1000-2000 words, 3-4 per group. | 1-6 | Indicative answers |
| Examination | 70 | 2 hours | 1-6 | Indicative answers |
Details of re-assessment (where required by referral or deferral)
| Original form of assessment | Form of re-assessment | ILOs re-assessed | Timescale for re-assessment |
|---|---|---|---|
| Home Mid-term (10%) | Questions on midterm material (10%) | 1-6 | Referral/Deferral Period |
| Homework (in groups) (20%) | Homework (individual) (20%) | 1-6 | Referral/Deferral period |
| Examination (70%) | Examination (70%) 2 hours | 1-6 | Referral/Deferral period |
Re-assessment notes
Deferral – if you have been deferred for any assessment you will be expected to submit the relevant assessment. The mark given for a re-assessment taken as a result of deferral will not be capped and will be treated as it would be if it were your first attempt at the assessment.
Referral – if you have failed the module overall (i.e. a final overall module mark of less than 40%) you will be expected to submit the relevant assessment. The mark given for a re-assessment taken as a result of referral will be capped at 40%
Indicative learning resources - Basic reading
Recommended textbooks are:
- Michael Maschler, Eilon Solan and Shmuel Zamir (2020), Game Theory (2nd ed.) Cambridge MA, Cambridge University Press, ISBN-13: 978-1108825146
- Martin Osborne (2009), An Introduction to Game Theory, Oxford, Oxford University Press, ISBN-13: 978-0195322484
- Martin Osborne, Ariel Rubinstein (1994), A Course in Game Theory, MIT Press. ISBN-13: 978-0262650403 (free for download at http://gametheory.tau.ac.il/arielDocs/)
- Ken Binmore (2007), Playing for real, A text on game theory, Oxford, Oxford University Press, ISBN-13: 978-0195300574
| Credit value | 15 |
|---|---|
| Module ECTS | 7.5 |
| Module pre-requisites | BEE1036 and BEE1037 |
| NQF level (module) | 5 |
| Available as distance learning? | Yes |
| Origin date | 20/01/2021 |
| Last revision date | 06/02/2024 |
