Volume 2023/2024
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 the courses Microeconomics III and Microeconomics II.

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.

Pandemic:
In case of a pandemic like Corona the teaching in this course may be changed to be taught either fully or partly online. For further information, see the course room on Absalon.
Schedule:
2 hours lectures one to 2 times a week from week 6 to 20 (except holidays).

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/​ku2021/​uk/​module.htm
-Select Department: “2200-Økonomisk Institut” (and wait for respond)
-Select Module:: “2200-F21; [Name of course]”
-Select Report Type: “List – Weekdays”
-Select Period: “Forår/Spring – Week 5-30”
Press: “ View Timetable”

- That it is the students´s own responsibility to continuously update themselves about their studies, their teaching, their schedule, their exams etc. through the study pages, the course description, the Digital Exam portal, Absalon, KUnet, myUCPH app, the curriculum 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.
Each student receives written individual feedback on the mandatory assignments.

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

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

____
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.

____

Aid
Without aids

for the written exam.

__

Marking scale
Censorship form
No external censorship
for the written exam. The exam may be chosen for external censorship by random check.
____
Exam period

Exam information:

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

For enrolled students more information about examination, rules etc. is available at Master students (UK) and Master students (DK).

Re-exam

Reexam info:

Info is available in Digital Exam early August.