23592 Game Theory
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Subject handbook information prior to 2020 is available in the Archives.
Credit points: 6 cp
Subject level:
Undergraduate
Result type: Grade and marksRequisite(s): 23567 Intermediate Microeconomics
These requisites may not apply to students in certain courses. See access conditions.
Description
This subject introduces students to game theory concepts used in solving a wide range of economic and non-economic problems. It provides a range of techniques for analysing strategies in both cooperative and non-cooperative settings and explores many applications.
Subject learning objectives (SLOs)
| 1. | introduce and explain concepts of game theory from first principles |
|---|---|
| 2. | apply game theory to explain a wide range of business and economic behaviours |
| 3. | use specific classes of games to analyse business strategies and policy making |
| 4. | analyse strategic situations in business |
Contribution to the development of graduate attributes
Game theory focuses on strategic decision-making. This subject will equip students with a range of techniques that will improve their ability to analyse and solve economic problems. It encompasses models of cooperation and conflict.
This subject contributes to the development of the following graduate attributes:
- Critical thinking, creativity and analytical skills
- Business practice oriented skills
Teaching and learning strategies
This subject is presented in lecture and tutorial format. Details of our teaching and learning strategies are described below.
Students’ Preparation for Learning: Students are expected to work on problem sets before tutorials to identify the gap between their own reasoning and the correct reasoning in the tutorial. Students are also asked to participate online experiments before lectures to compare their intuitive reasoning and the game theoretical reasoning.
Lectures: Essential concepts are presented in lectures. The lecturer also shows how those concepts can be applied to practical problems by using examples. Students are expected and encouraged to discuss potential applications of the concepts during lectures. When there was an online quiz just before a lecture, each question and the solution will be explained with a great emphasis on questions with lower average performance. When a new concept was introduced in the lecture, the result of relevant online experiments will be discussed. Students will then learn the gap between their intuitive reasoning and the rational reasoning to improve their analytical thinking skill.
Tutorials: After every lecture, a problem set is posted and students are expected to try it before the next tutorial. There are three types of questions; (i) the first type is designed to test understanding of concepts; (ii) the second type improves the skill of numerical problem solving ; (iii) the third type is to develop the skill to apply abstract concepts to practical problems. In the tutorial, the tutor explains how to solve those questions step by step and encourage students to discuss their approaches.
Online learning: All course materials are accessible by online. Students are also asked to take online quizzes as a part of the assessment task. The submitted answers will be automatically evaluated by the online system and students will learn the score and the correct solutions as feedback. Students are also encouraged to participate online experiments so that they can identify the difference between their intuitive reasoning and the game theoretical reasoning. The results of the experiments will be discussed during later lectures.
Content (topics)
- Games of strategy
- Normal and extensive forms of games
- Dominant strategy
- Nash equilibrium
- Sequential and simultaneous moves
- Applications to strategic situations
Assessment
Assessment task 1: Online Assignment (Individual)
| Objective(s): | This addresses subject learning objective(s): 1 and 4 |
|---|---|
| Weight: | 40% |
Assessment task 2: Final Exam (Individual)
| Objective(s): | This addresses subject learning objective(s): 1, 2, 3 and 4 |
|---|---|
| Weight: | 60% |
Minimum requirements
Students must achieve at least 50% of the subject’s total marks.
Recommended texts
Dixit, A., Reiley D., Skeath, S. Games of Strategy, 4th Edition, 2015, Norton
References
Lecture slides will be available for download from UTSOnline prior to lecture.