This course provides an introduction to strategic thinking and game theory as powerful tools for managerial decision-making. We will apply game theory to solve management problems and to determine optimal courses of action for decision makers. Game Theory is a structured way of analyzing strategic interactive situations. It provides the basics to the understanding of market competition among few firms, the design of incentive contracts, bidding at auctions, bargaining, and other similar interactive decision problems central to economics and business.
This course will focus on games of complete/perfect information, and cover topics and strategic problems like competition and collusion, market structure, timing and commitment, bargaining and negotiation, cooperation and dilemmas, coordination problems, and finite and infinite horizons.