ÐÂÀ˲ÊƱ

Course Outlines

ECON 7062 - Game Theory PG

North Terrace Campus - Semester 2 - 2021

This course provides an introduction to Game Theory. Game Theory is a mathematical framework which makes possible the analysis of the decision making process of interdependent subjects. It is aimed at explaining and predicting how individuals behave in a specific strategic situation, and therefore help improve decision making. A situation is strategic if the outcome of a decision problem depends on the choices of more than one person. Most decision problems in real life are strategic. The course will explain in depth the standard equilibrium concepts (such as Nash Equilibrium, Subgame-Perfect Nash Equilibrium, and others) in Game Theory. To illustrate the concepts, real-world examples, case studies, and classroom experiments might be used. Students will also participate in a group project involving the use of Game Theory to model contemporary issues.

Open All
  • General Course Information
    Course Details
    Course Code ECON 7062
    Course Game Theory PG
    Coordinating Unit Economics
    Term Semester 2
    Level Postgraduate Coursework
    Location/s North Terrace Campus
    Units 3
    Contact Up to 3 hours per week
    Available for Study Abroad and Exchange Y
    Incompatible ECON 3503
    Restrictions Available to MFin&BusEc, GCertAppEc, GCertIntEc, GDipIntEc, GDipAppEc, MAppEc students only
    Assessment Typically assignments, mid-Semester test, participation & final exam
    Course Staff

    Course Coordinator: Associate Professor Virginie Masson

    Office hours: TBA (See MyUni)

    Office location: Nexus 10, Level 4, Room 4.29

    Telephone: 8313 4926

    Preferred method of contact: email. Please do not call unless absolutely necessary.
    Course Timetable

    The full timetable of all activities for this course can be accessed from .

  • Learning Outcomes
    Course Learning Outcomes
    On successful completion of this course, students will be able to:
    1 Identify strategic situations and represent them as games.
    2 Solve simple games using various techniques.
    3 Analyse economic situations using game theoretic techniques.
    4 Recommend and prescribe which strategies to implement.
    5 Model any strategic interaction as a game and critically analyse the potential outcomes
    University Graduate Attributes

    This course will provide students with an opportunity to develop the Graduate Attribute(s) specified below:

    University Graduate Attribute Course Learning Outcome(s)
    Deep discipline knowledge
    • informed and infused by cutting edge research, scaffolded throughout their program of studies
    • acquired from personal interaction with research active educators, from year 1
    • accredited or validated against national or international standards (for relevant programs)
    		 1-5
    Critical thinking and problem solving
    • steeped in research methods and rigor
    • based on empirical evidence and the scientific approach to knowledge development
    • demonstrated through appropriate and relevant assessment
    		 1-5
    Teamwork and communication skills
    • developed from, with, and via the SGDE
    • honed through assessment and practice throughout the program of studies
    • encouraged and valued in all aspects of learning
    		 3, 5
    Career and leadership readiness
    • technology savvy
    • professional and, where relevant, fully accredited
    • forward thinking and well informed
    • tested and validated by work based experiences
    		 1-5
    Intercultural and ethical competency
    • adept at operating in other cultures
    • comfortable with different nationalities and social contexts
    • able to determine and contribute to desirable social outcomes
    • demonstrated by study abroad or with an understanding of indigenous knowledges
    		 5
    Self-awareness and emotional intelligence
    • a capacity for self-reflection and a willingness to engage in self-appraisal
    • open to objective and constructive feedback from supervisors and peers
    • able to negotiate difficult social situations, defuse conflict and engage positively in purposeful debate
    		 3, 5
  • Learning Resources
    Required Resources

    Textbook:

    Strategy: An Introduction to Game Theory, by Joel Watson, W. W.Norton & Company, 3rd edition

    Recommended Resources

    An Introduction to Game Theory, by Martin J. Osborne, Oxford University Press, USA (August 1, 2003)

    Games of Strategy, Second Edition, by Avinash K. Dixit and Susan Skeath, W. W. Norton & Company; 2nd edition (April 2004)

    Online Learning

    This course uses MyUni intensively and you are required to check the website regularly.

     

    Course material such as lectures notes, assignments, assignment answer guides and supplementary material for developing your mathematical skills are available under MyUni. Also, a discussion board will be available for questions you may want to ask your lecturer or fellow classmates.

    Game theory is best learnt through practice and hence, your attendance to and participation in lectures and workshops is mandatory.

  • Learning & Teaching Activities
    Learning & Teaching Modes

    Online Course Material:Some material will be posted on MyUni to introduce the concepts that we will discuss during the workshop sessions. You are expected to have read and understood the material BEFORE coming to the workshop so that we can allocate our time
    more efficiently when exploring further these concepts.

    Workshops:Workshops will provide you with the necessary understanding of the material needed to solve the exercises you will be given for assignments or exams. Examples will be used to illustrate the concepts presented in this course. Sessions will be interactive and are designed to be delivered face-to-face. There will be no recordings of these workshops.
    Exercises to be prepared for the workshop will be posted online. You are required to prepare ALL the exercises. During the workshop, some students may be asked to come to the board and present their work. Your lecturer will provide assistance if needed and questions from other students are strongly encouraged.

    Tutorials:Tutorials will address the shotcomings and difficulties identified during workshops sessions, and will clarify the expectations set for exams and assignments.

    Workload

    The information below is provided as a guide to assist students in engaging appropriately with the course requirements.

    The University expects full-time students (i.e. those taking 12 units per semester) to devote a total of 48 hours per week to their studies.

    This translates to 12 hours per week for a semester course.
    Learning Activities Summary
    Teaching & Learning Activities Related Learning Outcomes
    Workshops 1 - 4
    Tutorials 1 - 4

    LECTURE SCHEDULE


    Week    		 LECTURE SCHEDULE SUBJECT TO MINOR CHANGES

    Title

    Chapters
    1 Introduction - Extensive Form - Strategies and The Normal Form
    Beliefs, Mixed Strategies, and Expected Payoffs - General Assumptions and Methodology    		 Chapters 1 to 3
    Chapters 4 and 5
    2 Dominance and Best response - Rationalizability and Iterated Dominance
    Nash Equilibrium    		 Chapters 6 and 7
    Chapters 9 and 10
    3 Mixed-Strategy Nash Equilibrium – Strictly Competitive Games and Security Strategies Chapters 11 and 12
    4 Details of the Extensive Form - Backward Induction and Subgame Perfection Chapters 14 and 15
    5 Games with Continuous Strategies
    6 Bayesian Nash Equilibrium, Rationalizability Chapters 26 and 27
    7 Perfect Bayesian Equilibrium - Job Market Signaling and Reputation Chapters 28 and 29
    8 MidTerm Test (during workshop time)
    Mid Semester Break
    9 Repeated Games, Reputation, Random Events and Incomplete Information Chapters 22 and 24
    10 Bargaining Problems - Analysis of Simple Bargaining Games Chapters 18 and 19
    11 TBA - Depending on students' preferences
    12 Review for Final Exam 
     

    Specific Course Requirements

    IMPORTANT NOTE: This course ‘ECON7011 Game Theory IIID’ is closely associated with an undergraduate course, ‘ECON3503 Game Theory III’. Although the core material covered will be the same for both groups, there are differences in the expectations for the depth of understanding of the material. Also, assessment tasks are different. If you have any queries or concerns about the distinction between your course and the undergraduate course, please contact the lecturer.

  • Assessment

    The University's policy on Assessment for Coursework Programs is based on the following four principles:

    1. Assessment must encourage and reinforce learning.
    2. Assessment must enable robust and fair judgements about student performance.
    3. Assessment practices must be fair and equitable to students and give them the opportunity to demonstrate what they have learned.
    4. Assessment must maintain academic standards.

    Assessment Summary
    Assessment Task Due Date/ Week Weight Length(Word,Time) Learning Outcomes
    Mid-term Test Week 8 20% During workshop time, same location 1 - 4
    Project Week TBA 20% TBA 1 - 5
    Workshop Participation Weekly 5% N/A 1 - 4
    Assignment
    (some may involve group work)    		 Weekly 25% TBA 1 - 4
    Final Examination Exam period