Not available in 2020/21
Games and Economic Behaviour
This information is for the 2020/21 session.
Dr Andrew Ellis 32L 3.15 and Dr Francesco Nava 32L 3.20
This course is available on the BSc in Econometrics and Mathematical Economics, BSc in Economics, BSc in Mathematics and Economics, BSc in Mathematics with Economics, BSc in Mathematics, Statistics and Business and BSc in Philosophy and Economics. This course is available as an outside option to students on other programmes where regulations permit and to General Course students.
Students should have completed Microeconomic Principles I (EC201), or Microeconomic Principles II (EC202), or equivalent. Fluency in calculus is essential, and some knowledge of analysis, probability theory, linear algebra and set theory is advantageous. Highly motivated students with a less technical background could enrol on the course, if they find handling economics mathematically comes naturally. Any such student should see Dr Nava or Dr Ellis before the course starts.
This course reviews fundamental concepts in Economic Theory and presents some of its most successful applications. The first part of the course consists of an introduction to Auction Theory and Mechanism Design. It presents standard auction formats and discusses strategic behaviour in such environments. Auctions will be analysed both in private and interdependent value environments. Fundamental topics such as the revenue equivalence theorem, the optimal and efficient auction design problem, and the linkage principle will be covered in detail. Departures from the standard model will be also considered allowing for heterogeneity among players, risk aversion, and budget constraints. The focus of the course is mainly theoretical, but when possible some evidence supporting the formal models will be discussed with references to relevant work in the field. The second part of the course will survey concepts in non-cooperative game theory and will introduce students to game theoretic models of bargaining, voting, and communication. After setting up the primitives of the game theory framework, different solution concepts will be analysed with an emphasis on different applications. In studying models of bargaining, both axiomatic and non-cooperative approaches will be examined, such as Nash's axiomatic approach and the Rubinstein-Stahl model.
15 hours of lectures and 10 hours of classes in the MT. 15 hours of lectures and 10 hours of classes in the LT.
1 revision lecture held in week 11 of MT.
Students are urged to attempt all of the assigned problems before attending classes. At least four pieces of written work will be required and marked by class teachers. Students are expected to make positive contributions to class discussions.
V. Krishna, Auction Theory, Academic Press, 2009.
M. Osborne, An Introduction to Game Theory, Oxford University Press, 2003.
Exam (100%, duration: 3 hours, reading time: 15 minutes) in the summer exam period.
Important information in response to COVID-19
Please note that during 2020/21 academic year some variation to teaching and learning activities may be required to respond to changes in public health advice and/or to account for the situation of students in attendance on campus and those studying online during the early part of the academic year. For assessment, this may involve changes to mode of delivery and/or the format or weighting of assessments. Changes will only be made if required and students will be notified about any changes to teaching or assessment plans at the earliest opportunity.
Total students 2019/20: 23
Average class size 2019/20: 11
Capped 2019/20: No
Value: One Unit
Personal development skills
- Problem solving
- Application of numeracy skills