This course is a quantitative introduction to game theory and its applications to economics. This means the application of algebra and logic to solving formal models of strategic situations. Topics will include strategic and extensive form games, pure and mixed strategies, Nash equilibrium, subgame perfect equilibrium, games of incomplete information, formation of expectations, collective action games, evolutionary games, and the suitability of equilibrium concepts. Examples will be drawn from bargaining, auctions, market competition, employment markets, voting and collective choice, and other areas. In-class experiments as time permits. |