AØKA08076U Game Theory (F)
MSc programme in Economics – elective course
The course is part of the MSc programme in Economics (Financial line) symbolized by ‘F’.
This is a mathematically oriented course of game theory.
The course covers the standard parts of game theory, focusing mainly on non-cooperative games. The course starts with the expected utility theorem. For non-cooperative games, the teaching covers the most important solution concepts for strategic and extensive form games. The Aumann model of knowledge is presented. Also, the theory of games under uncertainty is discussed, leading to the extension of the solution concepts previously encountered. Furthermore, we study specific classes of games (e.g. supermodular games and global games) that are often used in economic theory. Finally, we illustrate a more axiomatic approach by discussing the basics of social choice theory. If there is time and interest, the implementation problem as well as matching algorithms might be covered.
We will formally show under which assumptions the covered solution concepts exist and derive certain properties. We will then illustrate and apply the solution concepts in examples and exercises. A detailed lecture schedule will be published online at the start of the term.
The course aims at giving the students the abilities and competences needed to understand and assess the fundamental aspects of strategic decision making by rational individuals where the framework for decision making specifies the actions open to the individuals as well as their objectives and the information available. The methodological goal of the course is to get students more accustomed to formal notation, proofs and logical reasoning. Students should have:
- of all the covered concepts and be able to determine which of the covered concepts is relevant in a given strategic situation (e.g. a fully specified game).
- to apply the appropriate (solution) concept in this situation.
- be able to explain the concepts covered in the course using appropriate definitions and examples .
- to point out strengths and weaknesses of the concepts and
- being able to relate different concepts.
- applying Brouwer's fixed point theorem.
Martin J. Osborne and Ariel Rubinstein: “A Course in Game Theory”, MIT Press, 1994 (note that an electronic version of the book is available for free from the websites of the authors);
M. Maschler, E. Solan and S. Zamir: “Game Theory”, Cambridge University Press, 2013 (note that the library provides an electronic version of this book)
The text books will be supplemented by some papers; the following is a tentative list of papers that might be covered
Aumann 1985: What is game theory trying to accomplish?; Frontiers of Economics
Gilboa, Itzhak, et al. "Economic models as analogies." The Economic Journal 124.578 (2014): pp.513-533.
Carlson and van Damme “Global Games and Equilibrium Selection”, Econometrica, Vol. 61, No. 5 (Sep., 1993), pp. 989-1018
Morris and Shin “Global Games: Theory and Applications”, Econometric Society Monographs 35, 2003, 56-114 - Cambridge University Press
Morris, Stephen, and Hyun Song Shin. "Unique equilibrium in a model of self-fulfilling currency attacks." American Economic Review (1998): 587-597.
Milgrom and Roberts “Rationalizability, Learning, and Equilibrium in Games with Strategic Complementarities”, Econometrica, Vol. 58, No. 6. (Nov., 1990), pp. 1255-1277
To see the time and location of classroom please press the link under "Se skema" (See schedule) at the right side of this page (16E means Autumn 2016).
You can find the similar information partly in English at
-Select Department: “2200-Økonomisk Institut” (and wait for respond)
-Select Module:: “2200-E16; [Name of course]””
-Select Report Type: List
-Select Period: “Efterrår/Autumn – Weeks 30-3”
Press: “ View Timetable”
for enrolled students. More information about registration, schedule, rules, courses etc. can be found at the student intranet (KUnet) for courses (English) and student intranet (KUnet) for courses (Danish).
Registration and information for prospective foreign speaking students, exchange students, Open University etc. please find more information at Study Economics.
- 7,5 ECTS
- Type of assessment
- Oral examination, 20 min under invigilation20 minuts oral exam in English with 20 minuts preparation without aids
- Exam registration requirements
Midterm (1week take-home assignment that can be done in groups) must be passed in order to be admitted to the final exam (oral exam).
- Without aids
- Marking scale
- 7-point grading scale
- Censorship form
- External censorship
100 % censorship
- Exam period
The oral exam period is January 23 to January 27, 2017
The exact date for the oral exam will be informed during the semester
The oral re-exam is February 6 to 7, 2017
The exact date for the oral exam will be informed by the Exam Office
Criteria for exam assesment
Students are assessed on the extent to which they master the learning outcome for the course.
To receive the top grade, the student must be able to demonstrate in an excellent manner that he or she has acquired and can make use of the knowledge, skills and competencies listed in the learning outcomes.