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Updated A.Y. 2020-2021


Game Theory proposes a way to model strategic interactions among rational agents using logico-mathematical approach. Relevant economic examples  are competition among strategic firms, conflicts among nations, trading behavior in stock markets, among others. The course presents the fundamental introductory tools to game theoretic analysis. A variety of examples will be discussed to illustrate the main concepts, with a specific reference to classical economic applications.

Programme for Game Theory

Strategic games of complete information

Dominant strategies and Nash equilibrium.

Applications: Cournot Oligopoly, Bertrand duopoly, Hotelling model of political competition, public good provision.

Mixed strategies. Existence of a Nash equilibrium in finite games.

Extensive games with perfect information

Extensive form, backward induction.

Subgame Perfect Nash Equilibrium.

Applications: Stackelberg duopoly, entry games, ultimatum games.

Some example of bargaining.

Extensive games with imperfect information: preliminaries.


Pre-requisites: Basic notions of Mathematics and Probability. Microeconomics, in particular individual decision under uncertainty.

Main reference:  M.J. Osborne, An Introduction to Game Theory, Oxford University Press

Knowledge and Understanding

The course provides the fundamental instruments to analyse strategic interactions that often appear  in the contemporary economic debate. Students will be exposed to logico-mathematical thinking and rigorous development of line of thoughts, via the use of assumptions, statements and proofs. At the end of the course, students  will have a clear understainding of the bacics of game theory.