EC 315 Game Theory
Game theory is the study of strategic situations – those where the best course of action depends on actions of other economic agents. Several perfect applications of game theory naturally occur in the business world where almost every decision is strategic, i.e., made keeping in mind the actions of competitors. Thus, to be successful in understanding and crafting complex and important business decisions, one must understand how to “play the game”. This course will introduce students to the science of strategic interactions as they occur in the business world. Students will learn the basics of game theory, as well as its the applications to real world business situations such as auctions, pricing under imperfect competition, first mover advantage, bargaining and negotiations, signaling and screening, incentive pay, etc. The class will alternate between developing the tools of game theory one week, and analyzing interesting applications of that theory next week using online games and case study analysis.
Prerequisite
EC 202 Principles of Microeconomics