This is an introduction to game theory and its applications.

In this course, the students learn what a strategic problem is and how it can be modeled as a game. They learn how such games can be analyzed, how solutions are found in terms of equilibria of the games, and how they can be interpreted. We explore how games can be analyzed, when the timing of decisions as well as uncertainty play a role. As a great focus is on applications of game theory, students get to know several important problem settings of economics and finance, where the tools of game theory are of great help for providing insight.

Full attendance is compulsory. This means that students should attend at least 80% of all lectures, at most one lecture can be missed.

The teaching method is an interactive style. We will have some parts with frontal lecture but many parts with interactive participation of students via examples and exercises.

The grade will be determined by:

assignment 1: 40%

assignment 2: 40%

homework: 15%

participation points: 5%

grades: 1: at least 90%, 2: at least 80%, 3: at least 70%, 4: at least 60%, 5: less than 60%

Hannelore.desilva@wu.ac.at