JEM013 - Game Theory Spring 2023

Teacher: Karel Janda

Assistants:

Xenia Bortnikova

Sophio Togonidze – head TA

Email: Karel-Janda@seznam.cz Office hours: Monday 9:30-10:50, 12:30-13:10 room 408, Opletalova 26; Wednesday 12:45-14:45 room 182NB, W. Churchilla Square 4.

Explanations:

W.Churchilla Square 4 is the main building of Prague University of Economics and Business.

Opletalova 26 is the building of Institute of Economic Studies of Charles University.

I have no office hours on: February 22, March 22, During May 2023-September 2024 I will be at UC Berkeley.

Literature: R. Gibbons: Game Theory for Applied Economists, Princeton University Press, 1992 - main textbook.

M. J. Osborne: An Introduction to Game Theory, Oxford University Press, 2004.

A.Mas-Colell, M. Whinston, and J. Green: Microeconomic Theory, Oxford University Press, 1995.

Many examples, lecture notes, links to readings and newspaper articles can be found at www.gametheory.net.

I will try to provide you with relevant handouts. There are libraries with books relevant to our class both at the Prague University of Economics and Business and Institute of Economic Studies. In addition, the best economic library in Prague is at CERGE-EI on Politickych veznu 7. The CERGE-EI library has all the books relevant for our class, some of them available for take-home loans.

You may also buy the textbooks over the Internet or order them through some local bookshop like http://bohemia.starman.net/en/home.aspx

Description: The introduction to game theory.

Content: Topics Covered

1. Introduction to game theory.

2. Generic and finite perfect information games.

2.1. Backwards induction.

2.2. Strategies versus outcomes.

3. Bargaining.

4. Simultaneous move games.

4.1. Rationalizability.

4.2. Iterated weak dominance (IWD).

4.3. Mixed strategies.

4.4. Nash equilibrium.

5. Dynamic, imperfect information games.

5.1. Nash, IWD, rationalizability etc.

5.2. Subgame perfect Nash equilibrium.

6. Repeated games.

6.1. Finitely repeated games.

6.2. Infinitely repeated games.

7. Incomplete information games.

Exam:

Exam 1: March 6, 2023, 9:30-10:50, room 109

Exam 2: March 20, 2023, 9:30-10:50, room 109

Exam 3: April 3, 2023, 9:30-10:50, room 109

Exam 4: April 24, 2023, 9:30-10:50, room 109

There is no lecture during the week of Exam 4 (last week of semester.)

Course requirements: The students are evaluated according to written exams. There will be 4 exams available to take for this class. 2 exams with highest score will determine your score. Each of these two exams may give you up to 50 points. So totally you may obtain up to 100 points. The thresholds for the grades are as follows: A: 90+ to 100; B: 80+ to 90; C: 70+ to 80; D: 60+ to 70; E: 50+ to 60; F: 50 or less. Therefore, borderline results are assigned the lower grade (e.g., 90 is B).

Cheating or other academic dishonesty during exam implies 0 for a particular exam and 10 points taken away from total in the case of slight dishonesty (20 points in the case of serious dishonesty). Any communication among the students during the exam is considered as cheating. Therefore during the exam communicate only with the exam supervisor. You may take watch and simple calculator for exams. Do not take any mobile phones or any other electronic devices for exams.