The objectives of this course are to enable students to understand strategic interactions and use game theoretic approach in choosing among alternative strategies in a business setting. Concentration will be on facilitating strategic thinking rather than mathematical modeling.
Focus will be on making decisions in multi person settings that involve strategic interactions. Game theory is a mathematical tool that can be used in modeling strategic interactions. It is used in many disciplines including business, economics, biology, political science etc. We will concentrate on establishing a taxonomy that enables us to think in a systematic pattern in the face of interactive decision making situations. Although the math will be kept at the minimum level possible, some knowledge of probability and derivatives will be necessary. Also some knowledge of economics (especially micro) will be helpful.
1. Understand game theory models and concepts.
2. Understand the articals that use intermediate and applied game theory.
3. Identify the real-life situations where game theory can be useful.
4. Understand the interactions between firms in oligopolistic markets.
|1||Games and Elements of a Game||Chapter 1 (II)|
|2||A First Look at The Applications||Chapter 1 (I)|
|3||A First Look at The Theory||Chapter 2|
|5||Strategic Form Games and Dominant Strategies||Chapter 3 (I), Chapter 2 (II)|
|6||Dominanace Solvability||Chapter 4 (I)|
|7||Nash Equilibrium||Chapter 5|
|9||Dynamic Games of Complete Information|
|10||Dynamic Games of Complete Information|
|11||Oligopolies: Sweezy, Cournot||Chapter 4 (II)|
|12||Oligopolies: Stackelberg, Bertrand||Chapter 4 (II)|
|13||Mixed Strategies||Chapter 8 (I)|
|Textbook||I. Strategies and Games: Theory and Practice by Dutta, Prajit K., MIT Press, 1999 II. Game Theory: Introduction and Applications by Graham Romp, Oxford 1997|
|Additional Resources||Lecture notes and chapter slides|
|Documents||Lecture notes and Chapter slides|
|Assignments||End of Chapter problems and Homework Assignments|
|Contribution of Final Examination to Overall Grade||40|
|Contribution of In-Term Studies to Overall Grade||60|
|No||Program Learning Outcomes||Contribution|
|1||Formulate and develop a critical and comprehensive understanding of global and national economic problems, and construct and design practical solutions;||x|
|2||Extract information and concepts from various disciplines in social sciences and integrate them under the rubric of economics;||x|
|3||Construct testable hypotheses to find original, practical solutions to various social ills and problems;||x|
|4||Develop an analytical understanding of economic problems, and the ability to evaluate the inherent logic, assumptions and conclusions of alternative approaches;||x|
|5||Develop the necessary technical skills to evaluate alternative approaches in economics;||x|
|6||Formulate research projects, plan and conduct research in social sciences in general and in economics in particular;||x|
|7||Present the results of their research in national and international conferences and in scientific and professional venues;||x|
|8||Apply the scientific / academic modes of thought and analysis to their professional lives and form a bridge between the analytical and abstract modes of thinking of academia and the practical and dynamic skills of business life;||x|
|9||Nurture and develop the analytical and technical skills necessary to continue their studies at a Ph.D. level, either in Turkey or elsewhere around the globe.||x|
|Activities||Quantity||Duration (Hour)||Total Workload (Hour)|
|Course Duration (Including the Exam Week: 15 x total course hours)||15||3||45|
|Hours for off-the-classroom study (Pre-study, practice)||15||10||150|
|Quizzes (attendance, presentation, etc.)||0|
|Total Work Load||250|
|Total Work Load / 25 (s)||10|
|ECTS Credit of the Course||10|