ECO290E: Game Theory

Last updated: March 31


Term / Time: Winter / Wed 9:00-12:00

Class room: G (5th Floor)

Office hours: Wed 15:30-17:30, Room C911

Syllabus: a word file



0. Announcement

(Released date, gCommentsh)


2008/03/31, gComments on the final exam and grading are uploaded.h New!

2008/03/28, gI just finished grading, and your final exam will be returned to your mail boxes on Monday.h

2008/03/18, gWe finished all the lectures. I really appreciate those who take this course. Good luck with your final exam!h

2008/03/14, gA practice exam is uploaded (see the lecture 14 gReview sessionh below).h

2008/03/12, gSlide files for Lecture 12 and 13 are uploaded.h

2008/03/11, gA practice exam will be uploaded (and also e-mailed to you) this Friday, and we will cover the material in class next Wednesday.h

2008/03/11, gThe slide for Lecture 11 is updated.h

2008/03/07, gThere will be a final exam on March 21 (Friday), at 6th period (18:20-19:50) in room G.h Very important!

2008/03/07, gSlide files for Lecture 10 and 11 are uploaded.h

2008/02/29, gSlide files for Lecture 8 and 9 are uploaded.h

2008/02/27, gLecture schedule is slightly modified.h

2008/02/22, gI finished grading, and add a comment file for the midterm.h

2008/02/22, gMidterm exam and its solution keys are uploaded. I will briefly explain the answers on Wednesday. Have a nice weekend!h

2008/02/14, gA slide file for Lecture 6 is uploaded.h

2008/02/13, gSlide files for Lecture 4 and 5 are uploaded.h

2008/02/13, gThere will be a mid-term exam on next Friday (Feb. 22nd), at the 6th period (18:20-19:50).h Very important!

2008/02/13, gThere will be no class on next Wednesday (Feb. 20th).h Important!

2008/02/07, gA slide file for the third lecture is uploaded.h

2008/02/06, gA slide file for the second lecture is uploaded (The third lecture slide will be available soon!).h

2008/02/06, gThere will be a make-up class at the second period on next Thursday (Feb. 14th, 10:35-12:05).h Important!

2008/02/06, gThe first period lecture on next week (Feb. 13th, 9:00-10:30) will be moved to the 6th period (18:20-19:50) on the same day.h Important!

2008/02/05, gTomorrow, we will meet at 9:00 am, NOT at 10:35, since our class schedule has been changed.h

2008/02/05, gCourse outline has been updated. (the topics we will cover tomorrow are unchanged)h

2008/01/30, gA power-point slide for the first lecture is uploaded!h

2008/01/30, gThe time schedule of the lecture is changed: now we have two morning classes.h Important!

2008/01/29, gThe following topics will be covered in the first lecture: self-introduction, what Game Theory is, the importance of strategic thinking, introduction to Nash equilibrium.h

2008/01/29, gThere will be no office hours tomorrow, so please catch me after the class if you have any questions.h

2008/01/24, g25 students have tentatively registered this class!h

2008/01/23, gThe lecture at the 6th period (18:20-19:50) on Jan 30th will be cancelled.h



1. Course Description


This is an introductory course in game theory, which will provide you with mathematical tools for analyzing strategically interdependent situations where the outcome of your actions depends also on the actions of others. In particular, we will study non-cooperative solution concepts such as Nash equilibrium, subgame perfect equilibrium, and Bayesian equilibrium. To illustrate the analytical value of these tools, we will cover a variety of applications.



2. Lecture Slides Each slide will be uploaded after corresponding class.


1: Introduction and motivation (a ppt file)

2: Static games and Nash equilibrium (a ppt file)

3: Why and how is Nash equilibrium reached? (a ppt file)

4: Applications in industrial organization (a ppt file)

5: Mixed strategy equilibrium (a ppt file)

6: Dynamic games and backward induction (a ppt file)

7: Midterm exam (60 minutes, 80 points) (midterm, solution, comments)

8: Games in extensive-form (a ppt file)

9: Subgame perfect equilibrium (a ppt file)

10: Examples of dynamic games (a ppt file)

11: Repeated games (a ppt file)

12: Static games of incomplete information (a ppt file)

13: Dynamic games of incomplete information (a ppt file)

14: Review session (practice exam)

15: Final exam (90 minutes, 120 points) (final, comments, comments on grading)



3. Grading


Course grade will be determined by combining grades on a midterm exam (40%) and a final exam (60%).



4. Textbooks


There is no official textbook for the class. While lecture notes will be the main material for the class, the following text is recommended for those who need supplementary readings.


Robert Gibbons, Game Theory for Applied Economists, 1992


A useful text at roughly the same level as Gibbons, but contains variety of examples, is:


Martin Osborne, An Introduction to Game Theory, 2004


Those of you interested in pursuing the subject further may consult the following advanced and authoritative sources.


Drew Fudenberg and Jean Tirole, Game Theory, 1991

Roger Myerson, Game Theory, 1991

Martin Osborne and Ariel Rubinstein, A Course in Game Theory, 1994


The following book contains many examples of game theory in action, both in business and in everyday life.


Barry Nalebuff and Avinash Dixit, Thinking Strategically, 1991


Finally, the following recent text provides a lively introduction to the game-theoretic perspective on economic development.


Bruce Wydick, Games in Economic Development, 2007



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