AØKA08076U  Game Theory (F)

Volume 2016/2017

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.

Learning Outcome

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

It is strongly recommended that Micro C/Micro III has been followed prior to taking Game Theory. Mastering the material from the Mathematic courses in the Bachelor program is very helpful.
The course consists of 3 hours of classes (lectures) every week for 14 weeks.
Timetable and venue:
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”
7,5 ECTS
Type of assessment
Oral examination, 20 min under invigilation
20 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

For enrolled students more information about examination, exam/re-sit, rules etc. is available at the student intranet for Examination (English) and student intranet for Examination (KA-Danish).


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.

  • Category
  • Hours
  • Lectures
  • 42
  • Preparation
  • 163,3
  • Exam
  • 0,7
  • Total
  • 206,0