Noncooperative game theory: rationality, dominance, Nash equilibrium, static games, dynamic games, repeated games, games of incomplete information.

Students can describe what game theory is, how it emerged and where it can be applied. Students understand the problems that arise when going from optimization (singe-player games) to strategic interaction (proper games). They master the methods required to analyze static and dynamic games and are capable of computing and interpreting equilibria in simple games. Students are able to identify game theoretic problems from social and economic life. They can apply learned methods to understand incentives and strategic motives of players.

Attendance in at least 80% of the units is mandatory, so you can be absent in at most two units.

• Lectures with material developed on the whiteboard and supported by slides
• Discussion of examples

Slides and exercises will be uploaded on Canvas. Students are requested to prepare for each class with the provided material.

The course will be graded on the basis of four homework assignments (20%; 5% each), a midterm exam (40%), and a final exam (40%). The midterm exam will be devoted to the material of classes 1-5, and the final exam will be devoted to the material of classes 7-11. The homework assignments will be helpful in preparation for midterm and final exams. Sample midterm and sample final will be provided in a timely manner. The percentage points required for marks 4,3,2, and 1 are 50.1%, 62.5%, 75.0%, and 87.5%.

Please log in with your WU account to use all functionalities of read!t. For off-campus access to our licensed electronic resources, remember to activate your VPN connection connection. In case you encounter any technical problems or have questions regarding read!t, please feel free to contact the library at readinglists@wu.ac.at.

Basic experience in mathematics and formal reasoning is required.