Game theory is a set of tools for studying situations in which decision-makers interact (such as consumers, firms, politicians, and governments). This unit provides a comprehensive yet intuitive introduction the sub-filed of non-cooperative game theory, namely simultaneous-move games. There will be a strong emphasis on applications of these techniques and equilibrium concepts to economics. The aim of this unit is to give students an understanding of a core concept of game theory, namely the so called Nash Equilibrium, and how to use it to understand and predict individual strategic behaviour as well as economic, social, and political phenomena.
You’ll learn to:
- Apply principles of economic-mathematical modelling to practical economic and business problems in which decision-makers choose their actions either simultaneously or at least in ignorance of each others’ decisions
- Evaluate economic and business problems by designing appropriate economic-mathematical models of simultaneous strategic interactions
- Solve, analytically or numerically, economic-mathematical models of simultaneous strategic interactions using quantitative methods
- Develop analytically founded policy or business recommendations