ECTS - Escola Superior de Estudos Industriais e de Gestão
Degree: Master Degree In Corporate Finance
Course: Game Theory
Academic Year: 2014/2015
Number of Credits (ECTS): 3.0
Theoretical/Practical Work (hours): 25.5 h
Tutorial Session (hours): 5.5 h
Seminar work (hours): 3.0 h
Academic year: 1
Term: Summer Semester
Attendance: Mandatory
Course Responsible Teacher: Doutora Fernanda Ferreira
Learning Outputs:
- To be able to apply the principal concepts of Game Theory to the Business Strategy.
- To understand the notion of strategic behavior;
- To learn and to distinguish the different types of equilibrium;
- Determine the equilibrium solution in static and dynamic games;
- To apply the Game Theory to the theoretical models.
Syllabus:
1. Basics of Game Theory
1.1. Historical Note on Game Theory
1.2. Elements of Game Theory: basic definitions and concepts
1.3. Actions, Strategies, and return balance;
1.4. Pure strategies and mixed strategies
2. Static games with complete information
2.1. Static games and Nash equilibrium
2.1.1. Representation of a strategic game
2.1.2. Equilibrium in dominant strategies
2.1.43. Nash Equilibrium
2.2. Applications
2.2.1 Prisoner's Dilemma
2.2.2. The model of Cournot and Bertrand duopoly
2.2.3. The Hotelling model
3. Dynamic games of complete information and subgame perfect equilibrium
3.1. Dynamic games of complete information: representation and subgame perfect equilibrium in
3.1.1. Extensive representation: trees game, strategies, information and earnings
3.1.2. Induction retroactive
3.2. The model of Stackelberg duopoly
3.3. Finitely and Infinitely Repeated Games
Learning Outputs:
Exposure and exploitation of the syllabus followed by preparation of group work and discussion of two students of the same.
Students have an active participation throughout the semester is required for a survey of the issues before they are presented in
class.
Realization of 3 seminars with experts in the field of game theory.
Assessment Methods:
Essay, test paper, exam.
References:
- Fiani, Ronaldo (2004). Teoria dos Jogos. Campus.
- Gibbons, R. (1992), A Primer in Game Theory, Prentice Hall. (or Game Theory for applied Economists, Princeton University
Press).
Notices:
e-mail: [email protected] Office: C103
Opened contact hours: Please see the information posted at C1.03 office door.
Doutora Fernanda Ferreira
Vila do Conde, 13 de Setembro de 2012