Masters in Economics: Game Theory

This website provides information about the course, as well as materials and references useful to prepare it.

DESCRIPTION: The course provides a framework which allows us to analyze situations of strategic interaction between rational individuals in which one agent's payoff depends on the decisions taken by all the other agents. Presently, Game Theory has applications to most branches in Economics.

INSTRUCTOR: Francisco Marhuenda
(marhuend@uc3m.es; office: 15.2.43.)

REFERENCES
•    Binmore, K., Game theory: A Very Short Introduction, Oxford University Press, 2007.
•    Ferreira, J. L. Game Theory: An Applied Introduction, MacMillan International, 1992.
•   Gibbons, R. Game Theory for Applied Economists, Princeton University Press, 2020. (Also available as A Primer in Game Theory. Pearson).
•    Hurrington, Joseph E. Games, Strategies and Decision Making, Worh Publishers, 2009.
•    Myerson R. B., Game Theory: Analysis of Conflict, Harvard University Press, 1991.
•    Mas-Colell A. , M. Whiston and J. Green: Microeconomic Theory, Oxford UP 1995. (MWG)
•    Osborne, M., An Introduction to Game Theory, Oxford University Press, 2003.
•    Sánchez Cuenca, Teoría de Juegos, Centro de Investigaciones Sociológicas, 2004.
•    Tadelis, S., Game Theory, An Introduction, Princeton University Press, 2013.

PROGRAM
1. What is game theory? Normal form games
2. Extensive form games
3. Applications
4. Repeated games
5. Static games of incomplete information
6. Dynamic games of incomplete information

GRADING: There will a midterm exam on November 2nd, a comprehensive final exam on January 10th and 2 in class quizzes (weeks 7 and 12). The final grade will be determined as the weighted average of:
    - Quizzes (20%)
    - Midterm (40%); and
    - Final exam (40%).