COURSE UNIT TITLE

: GAME THEORY AND APPLICATIONS

DEGREE PROGRAMMES

Description of Individual Course Units

Course Unit Code Course Unit Title Type Of Course D U L ECTS
ECN 5032 GAME THEORY AND APPLICATIONS ELECTIVE 3 0 0 6

Offered By

Economics (English)

Level of Course Unit

Second Cycle Programmes (Master's Degree)

Course Coordinator

PROFESSOR YEŞIM RABIA KUŞTEPELI

Offered to

Economics (English)

Course Objective

This class introduces the principles of non-cooperative game theory, including strategic form games, Nash equilibria, extensive form games, subgame perfection, repeated games, and games of incomplete information. The analytic material is accompanied by many applications, examples and exercises. Although game theory has been applied to many fields, focus is given to the kinds of game theory that have been most useful in the study of economic problems, including some applications to political science..

Learning Outcomes of the Course Unit

1   Demonstrate understanding strategic decision-making process of basic economic agents by the design of specific games
2   Be aware of the distinction between individual and public interest in terms of professional and ethical responsibilities by applications to specific economic phenomena and by reading news which include strategic decision making
3   Recognize the problems about mutual dependence and apply mathematical and numerical methods to solve these problems
4   Make presentations on a given subject by constructing research on the subject

Mode of Delivery

Face -to- Face

Prerequisites and Co-requisites

None

Recomended Optional Programme Components

None

Course Contents

Week Subject Description
1 Introduction and Nash Equilibrium
2 Introduction and Nash Equilibrium
3 Oligopoly
4 Strategic Trade Policy Strategic Trade Policy
5 Property Rights and Efficiency
6 Voting Games
7 Midterm
8 Sub game Perfect Equilibrium
9 Time-consistent Macroeconomic Policy
10 Uncertainty and Expected Utility
11 Moral Hazard and Involuntary Unemployment
12 Moral Hazard and Incomplete Insurance
13 Bayesian Nash Equilibrium
14 General Overview

Recomended or Required Reading

H. Scott Bierman and Luis Fernandez, Game Theory with Economic Applications, Addison- Wesley, Second Edition 1998.

Planned Learning Activities and Teaching Methods

1. Lectures
2. Presentations
3. Homework

Assessment Methods

SORTING NUMBER SHORT CODE LONG CODE FORMULA
1 MTE MIDTERM EXAM
2 STT TERM WORK (SEMESTER)
3 FIN FINAL EXAM
4 FCG FINAL COURSE GRADE MTE * 0.40 + STT * 0.20 + FIN* 0.40
5 RST RESIT
6 FCGR FINAL COURSE GRADE (RESIT) MTE * 0.40 + STT * 0.20 + RST* 0.40


*** Resit Exam is Not Administered in Institutions Where Resit is not Applicable.

Further Notes About Assessment Methods

None

Assessment Criteria

1. The learner will clearly define basic concepts used in non-cooperative game theory.
2. The learner will use necessary game theoretical concepts to explain strategic decision making in static and dynamic games.
3. The learner will use necessary numerical and mathematical methods to find the best responses of players in the game.
4. The learner will elaborate about the outcome (Nash equilibrium) of a game.
5. The learner will make research about and present a news item in which game theoretical terminology or decision making is used and a person who has contributed to game theory literature.

Language of Instruction

English

Course Policies and Rules

It is obligatory to attend at least 70% of the classes.

Contact Details for the Lecturer(s)

yesim.kustepeli@deu.edu.tr

Office Hours

Firday 13:00-15:00

Work Placement(s)

None

Workload Calculation

Activities Number Time (hours) Total Work Load (hours)
Lectures 13 3 39
Preparations before/after weekly lectures 13 2 26
Preparation for midterm exam 1 15 15
Preparation for final exam 1 20 20
Preparing assignments 1 20 20
Preparing presentations 1 20 20
Final 1 2 2
Midterm 1 2 2
TOTAL WORKLOAD (hours) 144

Contribution of Learning Outcomes to Programme Outcomes

PO/LOPO.1PO.2PO.3PO.4PO.5PO.6PO.7PO.8PO.9PO.10
LO.1543
LO.2445
LO.324
LO.43555

CONTACT INFORMATION
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Phone: +90(232) 412 12 12 - Fax: +90 (232) 464 81 35

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