This course focuses on strategic decision-making in interactive situations where different individuals must anticipate what others are going to do. Game theory offers a systematic way to study environments with strategic interactions. The ultimate goal of this course is to enhance the student’s ability to think strategically in complex, interactive situations. This course also encourages discovery learning, which takes place when students apply their knowledge and skills in game theory to discover solutions to problems in business and life.
An introduction of the main ideas and techniques of game-theoretic analysis related to cooperation, coordination, pricing, location choice, bargaining, conflict, negotiation, bidding in auctions, cheap talk and other strategic interactions in business will be presented. We will adopt a problem-centred approach and use equilibrium analysis in a variety of settings.