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Syllabus

EN IT

Learning Objectives

The first module of the course is focused on the Keynesian income-expenditure model in an open economy as a reference.

The second module introduces students to game theory. It covers topics such as the criterion of dominance and Nash equilibrium, which are analyzed with pure strategies and mixed strategies. Various refinements of equilibrium, including Backwards Induction and subgame perfect Nash equilibrium, are explored. An introduction to Bayesian equilibrium and repeated games is also provided.

Throughout the course, several examples from the fields of economics, politics, and economic policy are used to illustrate key concepts. Additionally, this year's course includes the use of strategic frameworks to analyze the conflict between Ukraine and Russia, providing a real-world application of game theory principles.

BRUNO CHIARINI

Prerequisites

No formal pre-requisites

Program

The Course is divided into two Modules (Introduction to International Economics and Game Theory).

The first module (21 hours) provides students with an overview of the economic and financial links between a country and the world economy, using the balance of payments and the Keynesian income-expenditure model in an open economy as a reference.

The 2nd module (42 hours) is an introduction to game theory. The criterion of dominance and the equilibrium of Nash will be analysed with pure strategies and mixed strategies, as well as different refinements of the equilibrium (Backwards Induction, subgame perfect Nash equilibrium). An introduction to Bayesian equilibrium and repeated games will also be provided. The lessons use several examples in the field of economics, politics and economic policy. This year we will use strategic frameworks to analyze the conflict between Ukraine and Russia.

During each lecture, the lecturers present the planned content with the aid of power point presentations and invite students to critical reflection and dialogue.

Books

Module Paesani

1. The Economy. CORE Project (selected chapters). https://core-econ.org/the-economy/?lang=en
2. Lecture material handed over on line.

Module Chiarini

The teacher will refer the student, by the end of each week, to the relevant material on the basis of the above topics:
Pdf lessons of the teacher, downloadable.
One of the following volumes:
Gibbons A. Primer in Game Theory, Prentice Hall
Osborne M. Introduction to Game Theory: International Edition, OUP Oxford

Teaching methods

The course is based on lectures. The lectures will provide the students with the necessary information and reading guidelines on the phenomena under study. Students are expected to attend each class, to come to class prepared and to participate in discussions.

Exam Rules

The examination assesses the student's overall preparation, ability to integrate the knowledge of the different parts of the program, consequentiality of reasoning, analytical ability and clarity of presentation, in accordance with the Dublin descriptors (1. knowledge and understanding; 2. applying knowledge and understanding; 3. making judgements; 4. learning skills; 5. communication skills).

Module I (Prof. Paesani) counts for 1/3 of the course grade.
Module II (Prof. Chiarini) counts for 2/3 of the course grade.

Exam Module Paesani

The verification of learning takes place exclusively through a final examination which consists of a written exam. The exam consists of three open questions (same weight, 1/3 of final mark) plus a bonus question.

The objective of the final examination is to verify the achievement of the course learning outcome. In particular, the examination assesses the student's overall preparation, ability to integrate knowledge of the different parts of the programme, consequentiality of reasoning, analytical ability and autonomy of judgement. In addition, language skills and clarity of exposition are assessed, in adherence with the Dublin descriptors.

Minimum score for passing the written test 18 out of 30.

Students may take the examination on all available dates. there is no roll-call jump.

Exam module Chiarini

All students are eligible to take the midterm written test after the first three weeks of the course. However, the final exam will be different for students who are always present in class (more than 80% of class attendance) and for students who do not attend. Non attending students will have to perform a longer final written exam on the whole program. Students are encouraged to attend lectures as the course is based on reasoning frameworks applied to various contexts (politics, economics, conflicts, etc.) that should be discussed with the teacher.


Grading criteria valid for both modules

FAIL: important deficiencies and/or inaccuracies in the knowledge and understanding of the topics; limited ability to analyse and synthesise, frequent generalisations and limited critical and judgemental skills, the topics are set out inconsistently and with inappropriate language;
18-20: Barely sufficient knowledge and understanding of the topics with possible generalisations and imperfections; sufficient capacity for analysis, synthesis and autonomy of judgement, the topics are frequently exposed in an incoherent manner and with inappropriate/technical language;
21-23: Routine knowledge and understanding of topics; ability to analyse and synthesise correctly with sufficiently coherent logical argumentation and appropriate/technical language
24-26: Fair knowledge and understanding of the topics; Good analytical and synthetic skills with arguments expressed in a rigorous manner but with language that is not always appropriate/technical.
27-29: Comprehensive knowledge and understanding of the topics; considerable capacity for analysis and synthesis. Good autonomy of judgement. Arguments presented in a rigorous manner and with appropriate/technical language
30-30L: Excellent level of knowledge and thorough understanding of topics. Excellent analytical and synthetic skills and independent judgement. Arguments expressed in an original manner and with appropriate technical language.

PAOLO PAESANI