- 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.
- Homework assignments:
- Exams:
- Game Theory
Professor – School of Economic Sciences, Washington State University
Felix Munoz-Garcia 