AØKK08408U Advanced Game Theory

Volume 2021/2022
Education

MSc programme in Economics – elective course
 

The PhD Programme in Economics at the Department of Economics:

  • The course is an elective course with research module. PhD students must contact the study administration AND the lecturer in order to register for the research module and write the research assignment.
  • The course is a part of the admission requirements for the 5+3 PhD Programme. Please consult the 5+3 PhD admission requirements.
Content

The course covers the standard parts of non-cooperative game theory, focusing mostly on dynamic games. The teaching covers the most important solution concepts for strategic and extensive form games. We cover different approaches to sequential rationality in dynamic games. 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.

 

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.

 

This is a mathematically oriented course of game theory and covers topics as:

  • Strategic form games: Pure and mixed strategies, dominant and dominated strategies, rationalizable strategies, Nash equilibrium
  • Extensive form games: Sequential rationality, backward induction, sub-game perfect equilibrium, sequential equilibrium
  • Dynamic games of complete information: Bargaining games, repeated games
  • Games of incomplete information: Bayesian Nash equilibrium, perfect Bayesian equilibrium

 

A detailed lecture schedule will be published in Absalon at the start of the term.

Learning Outcome

After completing the course the student is expected to be able to:

 

Knowledge:

  • Define and critically discuss the key solution concepts in game theory.
  • Prove main theorems in game theory.

 

Skills:

  • Solve static and dynamic games with full rigor.
  • Formulate game theory models and solve.
  • Evaluate the implications of a chosen modelling approach and solution concept.
  • Apply theoretical analysis on chosen topics.
  • Analyse situations where strategic behaviour is important.
  • Read and evaluate research articles that apply game theory as the method of analysis.
  • Search for relevant research articles independently.

 

Competencies:

  • Master the broad analytical approach on game theory when analyzing and solving questions where strategic behavior plays a role in complex and unpredictional situations.
  • Find new suitable sources to expand the learned knowledge and skills on game theory when facing questions in new contexts.

George Mailath (2020): ”Modeling Strategic Behavior: A Graduate Introduction to Game Theory and Mechanism Design” (pdf available for free on the author’s website:   https:/​/​web.sas.upenn.edu/​gmailath/​books/​modeling-strategic-behavior/​).

Including lecture notes and journal articles.

The student should have a sound knowledge of game theory and decision under uncertainty from courses corresponding to Microeconomics III and Microeconomics II at the Department of Economics, University of Copenhagen.
It is strongly recommended to have followed Microeconomics III prior taking Advanced Game Theory.
The course is structured in three kind of classes:
- Basic lectures, where we will go through the main theory with applications, focusing on understanding the key concepts illustrated by a lot of examples.
- Advanced lectures, where we discuss different games on a more abstract level and prove the main theorems.
- Seminar classes discussing research papers and apply game theory to real world problems.

Restrictions due to pandemic crisis:
The teaching in this course may be changed to be taught either fully or partly online due to a pandemic crisis like COVID-19. In case of changes and further information, please read the study messages in KUnet or the announcements in the course room on Absalon (for enrolled students).
Schedule:
2 hours lectures one to 2 times a week from week 6 to 20.

The overall schema for the Master can be seen at KUnet:
MSc in Economics => "courses and teaching" => "Planning and overview" => "Your timetable"
KA i Økonomi => "Kurser og undervisning" => "Planlægning og overblik" => "Dit skema"

Timetable and venue:
To see the time and location of lectures please press the link under "Timetable"/​"Se skema" at the right side of this page ( F means Spring).

You can find the similar information in English at
https:/​/​skema.ku.dk/​ku2122/​uk/​module.htm
-Select Department: “2200-Økonomisk Institut” (and wait for respond)
-Select Module:: “2200-F22; [Name of course]”
-Select Report Type: “List – Weekdays”
-Select Period: “Forår/Spring – Week 5-30”
Press: “ View Timetable”

Please be aware:
- The schedule of the lectures can be changed without the participants´ acceptance. If this happens you can see the new schedule in your personal timetable at KUnet, in the app myUCPH and through the links in the right side and the link above.
- It is the students´s own responsibility continuously throughout the study to stay informed about their study, their teaching, their schedule, their exams etc. through the curriculum of the study programme, the study pages at KUnet, student messages, the course description, the Digital Exam portal, Absalon, the personal schema at KUnet and myUCPH app etc.
  • Category
  • Hours
  • Lectures
  • 42
  • Preparation
  • 161
  • Exam
  • 3
  • Total
  • 206
Oral
Collective

 

The students receive oral collective feedback during the content of the lectures.

Students receive oral feedback on the mandatory assignments.

 

Credit
7,5 ECTS
Type of assessment
Written examination, 3 hours under invigilation
as an ITX-exam in the exam venues of the university.

The exam assignment is given in English and must be answered in English.

Changes due to Coronavirus:
In the event that COVID-19 restrictions may affect the conduction of the ITX-exams, the written exam and the re-sit exam will be changed to a 3.5 hours take-home exam with all aids. If done so, the changes will be announced in study messages at KUnet and in the Digital Exam portal.

The take-home exam is an individual exam and it is not allowed to communicate with any one about the exam assignment nor the solution at all. It is also prohibited to distribute data and other information at all. If this or alike actions happens, it will be regarded as cheating and plagiarism.
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Exam registration requirements

To qualify for the exam the student must no later than the given deadlines during the course:

  • Hand ind and have approved 3 out of 4 mandatory assignments.

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Aid

No aids allowed at the written ITX-exam.

 

If the ITX-exam is changed to a take-home exam due to COVID-19, the written take-home exam will be with all aids.

 

Information about allowed aids for the re-examination, please go to the section "Re-exam".

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Marking scale
7-point grading scale
Censorship form
No external censorship
at the written exam.
The written ITX-exam may be chosen for external assessment by random sample.
An oral re-examination may be with external assessment.
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Exam period

The regular exam takes place:

7 June 2022

 

Exam information:

The exact time and place will be available in Digital Exam from the middle of the semester.

The Department can change the exam to another type, day, time and place than announced. 

More information about examination, rules, aids etc. is available at Master(UK) and Master(DK).

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Re-exam

The written reexam takes place:

16 August 2022

 

Information:

If few students register, it might change to a 20 minutes oral examination with 20 minutes preparation time.

Written aids allowed during the preparation time.

No aids allowed during the examination.

 

Due to COVID-19, the re-sit might change to 20 minutes oral ONLINE exam with all aids, without preparation time.

 

Exact type, day, time and place is available in Digital Exam August.

The Department can change to another type, day, time and place than announced.

More info: Master(UK) and Master(DK). 

 

Criteria for exam assesment

Students are assessed on the extent to which they master the learning outcome for the course.

 

In order to obtain the top grade “12”, the student must with no or only a few minor weaknesses be able to demonstrate an excellent performance displaying a high level of command of all aspects of the relevant material and can make use of the knowledge, skills and competencies listed in the learning outcomes.

 

In order to obtain the passing grade “02”, the student must in a satisfactory way be able to demonstrate a minimal acceptable level of  the knowledge, skills and competencies listed in the learning outcomes.