GAMES, INFORMATION AND CONTRACT THEORY AND INDUSTRIAL ORGANISATION AND COMPETITION POLICY
GAMES, INFORMATION AND CONTRACT THEORY
Updated A.Y. 2018-2019
Static games of complete information. The Nash equilibrium in pure strategies. Nash equilibrium in mixed strategies. Cournot's model. Bertrand's model. The tragedy of commons. Dynamic games of complete information. Extensive form games and backward induction. Subgame perfect Nash equilibrium. Stackelberg model of duopoly. Repeated games. The Prisoner’s dilemma. The Folk theorem. Static Games of incomplete Information. Bayesian Nash equilibrium. Basics of Auction theory. Dynamic games of incomplete information. Perfect Bayesian equilibrium. Basics of signalling.
Exam and grading
The exam for the whole course (GAMES, INFORMATION AND CONTRACT THEORY) consists in two tests: a written exam on Game Theory, and a take-home exercise on Social Capital. You will have a mark for each test.
The final mark is given by: 0.7*(mark of written exam) + 0.3*(take-home exercise).
To be passed, the final mark must be no lower than 18. Moreover, the mark of the written exam must be no lower that 18, and the mark of take-home exam must be no lower that 15.
All the tests must be passed within one exam session, otherwise all the tests will be re-taken within one session. Notice that if you do not send the take-home exercise on Social Capital by the assigned deadline you can still take the exam, but you will have to answer an additional question on Social Capital.
During the course, a pre-exam will be also available. The pre-exam is a written exam on Game Theory. If you pass the pre-exam (mark no lower than 18), you are exempted from the written exam. However, even if you pass the pre-exam you can decide to take the written exam, but in this case the mark of the pre-exam will expire.
Please notice that, starting from this year, the final mark will be averaged with the one from Industrial Organisation, and there will be a unique written exam for the two (unless you take the first part in the pre-exam).
The GAMES, INFORMATION AND CONTRACT THEORY exam lasts 1 hour, and it will consist of two exercises on the topics covered in class (plus a question on Social Capital if you did not send the assignemnt). In a similar fashion, the INDUSTRIAL ORGANISATION exam will last one hour.
Gibbson, R. (1992), Game theory for applied economists, Princeton University Press.