- Syllabus – EconS 503, Spring 2022
- List of recommended exercises for review. Link.
- Class Slides (classified by topics):
- Game Theory
- Introduction to games and their representation.
- Dominance solvable games: application of IDSDS and IDWDS.
- Pure strategy Nash equilibrium (psNE):
- Mixed strategy Nash equilibrium (msNE):
- Sequential-move games and subgame perfect equilibrium (SPNE):
- Introduction to backward induction.
- Mixed vs. Behavioral strategies in extensive-form games.
- Applications to dynamic oligopoly competition.
*Optional*: Application of SPNE to time-inconsistent preferences.- Applications of SPNE to: Strategic pre-commitment.
- Applications of SPNE to: Bargaining games over finite and infinite periods.

- Repeated games:
- Simultaneous-move games of incomplete information:
- Bayesian Nash equilibrium (BNE).
- Applications of BNE: The game of chicken.
- BNE in games with continuous action spaces: Cournot competition under incomplete information.
- BNE in games with continuous types: Public good games under incomplete information: The “study group” game.

- More applications of BNE with continuous action spaces (Auction Theory):
- Auction Theory-I: Paper and Slides
- Auction Theory-II: The Revenue Equivalence Theorem.
- Auction Theory III: Common value auctions.
- More exercises on auction theory in this book.

*Optional*: More applications of BNE – Information aggregation among several players.- From Bayesian Nash Equilibrium (BNE) to Perfect Bayesian Equilibrium (PBE):
- Applications of PBE to signaling games:
- How to find semi-separating PBEs (involving mixed strategies):
- Cheap-talk games:
- Signaling games in which both players (sender and receiver) are privately informed about their own type.
- Equilibrium refinement criteria (the “Intuitive Criterion” and the “Divinity Criterion”).

- Signaling games with continuous action spaces:
- Contract theory.
- Chapter 10 (Contract Theory) – All slides
- Moral hazard:
- Adverse selection and screening:

- General equilibrium theory – All slides.
- Mechanism design:
- Social choice theory:
- Weekly review sessions (practice exercises with answer keys):
- Basic elements of game theory
- Nash equilibrium
- Subgame perfect equilibrium
- Repeated games
- Bayesian Nash equilibrium
- Perfect Bayesian equilibrium (PBE) and signaling
- PBEs and the application of Cho and Kreps’ Intuitive Criterion
- Cheap talk games and labor market signaling
- Moral Hazard
- Adverse Selection-I
- Adverse Selection-II
- Adverse Selection-III
- General Equilibrium
- Mechanism Design
- Social Choice Theory
- For the section of game theory and contract theory, you can find more explanations and examples in my book,
*Advanced Microeconomic Theory: An Intuitive Approach with Examples*,**Link**and**eBook format**. You can also find more exercises with detailed answer keys in*Practice Exercises for Advanced Microeconomic Theory*, MIT Press,**Link**and**eBook format**. - For the section of game theory, you can find more exercises (with answers) in my book:
*Strategy and Game Theory, Practice Exercises with Answers*. Springer-Verlag (2nd edition),**Link**and**eBook format**.

- For the section of game theory and contract theory, you can find more explanations and examples in my book,

- Homework assignments:
- Exams:

- Game Theory