Game theory, the mathematical theory of interactive decision making, has significantly changed how economists think and model economic problems. It has been similarly influential in the political sciences, biology, computer sciences and philosophy. It provides a methodology for analysing the strategic aspects of situations of conflict and cooperation. The module will develop further what students have learned about the subject in intermediate microeconomics. Throughout, a wide range of examples will be used to introduce game theoretic core concepts and ideas, and illustrate their applications to economics and political sciences.
The whole content of this module is a neutral methodology which is applicable across disciplines and across geographic or national boundaries.
All of the resources for this module are available on the ELE (Exeter Learning Environment).
Strategic and critical thinking and an understanding how incentives work are essential for working and operating professionally in practically any economic activity or institution (in the financial or labor markets) and any social or political institutions (such as parliaments, local councils, committees, boards of directors etc.) whether in the public or private sector.
Research in Teaching
The module is taught by active researchers in game theory who will bring their experience and expertise to the various topics taught in class.
Full module specification
|Module title:||Game Theory|
BEE2024 Economic Principles and Policies or BEE2025 Microeconomics 2
|Duration of module:||
Duration (weeks) - term 1: |
The module builds on the basic game theory as it is taught in intermediate microeconomics modules and develops it further. It provides a more thorough discussion of basic and more advanced game theoretic concepts. It offers useful background knowledge for a wide variety of modules that follow in term 2 as BEE3034 Financial Markets and Decisions 2, BEE3037 Industrial Organization, BEE3044 Money and Banking 2, or BEE3049 Behaviour, Decisions and Markets.
ILO: Module-specific skills
- 1. understand how game theory can be used to model and analyze interactive decision situations involving several decision makers.
- 2. demonstrate comprehensive and detailed knowledge and understanding of some main topics in game theory
ILO: Discipline-specific skills
- 3. be aware and able to explain how game theory is a useful tool in many economic sub disciplines
- 4. understand how incentives matter and affect behaviour
ILO: Personal and key skills
- 5. effectively communicate concepts/definitions/arguments
- 6. use strategic analysis to understand situations of conflict and cooperation.
Learning activities and teaching methods (given in hours of study time)
|Scheduled Learning and Teaching Activities||Guided independent study||Placement / study abroad|
Details of learning activities and teaching methods
|Category||Hours of study time||Description|
|Contact hours||22||Lectures (11 x 2 hours)|
|Contact hours||5||Tutorials (5 x 1 hour)|
|Form of assessment||Size of the assessment (eg length / duration)||ILOs assessed||Feedback method|
|Tutorial Questions||In class||1-6||In class feedback|
Summative assessment (% of credit)
|Coursework||Written exams||Practical exams|
Details of summative assessment
|Form of assessment||% of credit||Size of the assessment (eg length / duration)||ILOs assessed||Feedback method|
|Mid-term Test||10||1 hour||1-6||Verbal feedback and indicative answers|
|Examination||90||2 hours||1-6||Indicative answers|
Details of re-assessment (where required by referral or deferral)
|Original form of assessment||Form of re-assessment||ILOs re-assessed||Timescale for re-assessment|
|Examination and Mid-Term||Examination (100%)||1-6||August|
- Extensive Form Games
- Strategic Form Games and Solution Concepts
- Behaviour Strategies
- Equilibrium Refinements
- Repeated Games
- Correlated Equilibrium
- Games with Incomplete Information
- Bargaining Games
- Transferable Utility Games and the Core
- The Shapley Value
Indicative learning resources - Basic reading
The module is based on the book:
Michael Maschler, Eilon Solan and Shmuel Zamir (2013), Game Theory, Cambridge MA, Cambridge University Press, ISBN-13: 978-1107005488
Other recommended textbooks are:
Martin Osborne (2009), An Introduction to Game Theory, Oxford, Oxford University Press, ISBN-13: 978-0195322484
Ken Binmore (2007), Playing for real, A text on game theory, Oxford, Oxford University Press, ISBN-13: 978-0195300574
Module has an active ELE page?
Last revision date