Prerequisites: A university level course in business, management, psychology or economics. Knowledge of some statistics, (mean, standard deviation) and economics (utility maximization, monopoly pricing) are recommended
Dr Kristof Madarasz
Professor Luis Rayo
This course is an introduction to strategic thinking applied to managerial situations. By drawing simultaneously on the language and tools of game theory, economics and management, we develop a coherent and logical framework to help analyse real-life business situations.
The course does not require extensive prior knowledge of mathematics, but students should possess the willingness and interest to analyse real world problems using analytical methods and to acquire the tools necessary to do so.
Following an introduction to game theory, oligopoly theory, and the psychology of intuitive decision-making, we study concrete business situations, including firm entry, research and development, and the design of markets. We will place an emphasis on firm asymmetries, and the emergence of core competencies. We will analyse real-life case studies using the tools studied in the lectures.
The course is a valuable complement to courses in business and corporate strategy and a less technical treatment of tools originating from industrial organisation, game theory and the psychology of strategic behaviour.
L. Cabral, Introduction to Industrial Organization, MIT Press (2000)
Dixit and Skeath, Games of Strategy, Norton (2004)
Lectures: 36 hours Classes: 12 hours
Assessment: Two written examinations