Game Theory (econ 414)
Online Syllabus
Spring 2014
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Instructor:
Nuno Limão |
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Sections: 101
/201 |
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4118K
Tydings Hall, x57842 |
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Time: Tu Th 9:30-10:45/11:00-12:15 |
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Location: TYD 1108 |
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Off. hrs:
Th 13:45-14:45 or by appt. |
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Our objective is learning basic concepts and tools to identify and
analyze situations characterized by strategic interdependence—where an
individual’s payoff depends on another’s actions. These situations are
ubiquitous in Economics (and other Social Sciences), and thus Game Theory is
essential for understanding a range of issues that include decisions by
individuals in (i) firms (e.g. market-entry, production, pricing, hiring and monitoring workers);
(ii) households (e.g. work effort, insurance) and (iii) governments (e.g.
market regulation, fiscal and monetary policy commitments, international
agreement negotiation). We will learn how to translate specific strategic
interactions into a game, how to solve it, and when appropriate, whether a
game’s predictions are supported by empirical evidence.
This course
is designed for Economics' majors. You must have taken intermediate micro (ECON326) and a statistics course (ECON321 or STAT400) with a grade of 'C-' or better . You should be very comfortable with
using the concepts and tools taught in those courses, since we will build on
them.
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The final
grade will be a weighted average of the following (dates in the schedule)
§ Four problem sets (20%)
§ Two midterms (40%)
§ One final exam (40%)
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Extra credit: The game theory we will learn is motivated
by important real-world strategic interactions. One way to learn how to reason
in such situations and whether these theories are relevant is to play the
“games” and we will try to do so in class. Your participation in
these games will be worth up to 10% extra credit toward your final grade.
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The exam
questions will be based on all the material covered in class, required readings
and problem sets assigned before the exam. The final will be cumulative.
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Exams are
closed book and closed notes.
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Problem sets
are open book and you can discuss questions with other students but you must
hand in your individual and original answers. I will post the questions and
solutions on ELMS.
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All
assignments must be completed by the deadline (start of class for PS). There
will be no make-up exams except under one of the three exceptions stipulated by
the university: illness supported by a doctor's letter, religious holidays or
participation in University activities at the request of university
authorities. You must contact me prior to the exam/assignment date in order to
reschedule.
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If you have
a documented disability registered with the DSS office and require special
arrangements for an exam you must provide the documentation one week before the
first exam.
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I strongly
recommend you attend the class and prepare in advance for it by reading the
relevant material listed below for each topic. Any notes I make available in
ELMS will be outlines and not a substitute for the material covered in class.
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I also
strongly recommend that you do the suggested exercises to check your
understanding of the material on an ongoing basis.
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Plagiarism
and cheating. The
http://www.studenthonorcouncil.umd.edu/whatis.html
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Harrington,
J. Games, Strategy and Decision
Making, 2009,
Worth Publishing.
This outline and the schedule provide
a basic guide for the topics and chapters in parenthesis that we will cover.