Strategy and complexity (intensive course)

EM023M2CA1

Program
PGE
Visitants
UE
Strategy and complexity
Semester
A
Discipline
Strategy
Contact hours
27 H
Number of spots
45
ECTS
5
Open to visitors
Yes
Language
Coordinator
Charles Mason

List of lecturers

Lecturer(s) Email Contact hours - lecture
Charles MASON bambuzlr@uwyo.edu 27 h

Pedagogical contribution of the course to the program

No educational contribution associated with this course for this program.

Description

We will discuss a variety of important concepts in the application of game theory and the economics of uncertainty. These include decision making under uncertainty, risk attitudes, extensions to the traditional model, Nash equilibrium, backward induction and subgame perfect equilibrium. We will also explore some relatively new uses of game theory and uncertainty, including behavioral economics.

Teaching methods

Face-to-face

- Lectures

In group

- Exercises
- Oral presentations

Interaction

- Discussions/debates

Others

No items in this list have been checked.

Learning objectives

Cognitive domain

Upon completion of this course, students should be able to
  • - (level 1) recognize incentives confronting decision-makers
  • - (level 2) summarize motives and likely behavior
  • - (level 3) predict outcomes from strategic interactions
  • - (level 3) solve for optimal behavior in situations with risk or strategic interactions
  • - (level 4) analyze implications of strategic or risky environments
  • - (level 5) evaluate influence of risk, strategic interactions

Affective domain

Upon completion of this course, students should be able to
None affective domain have been associated with this course yet

Outline

A. Decision-making under uncertainty topic : Decision-making under Uncertainty: introduction # of lectures : 2 Chapter(s) : HR 1; ST 1, 2.1; RT: 19.4 topic : Risk attitudes # of lectures : 2 Chapter(s) : HR 2; ST 2.2 topic : Insurance and portfolio demand # of lectures : 2 Chapter(s) : HR 3; ST 2.3, 2.4 topic : Using information # of lectures : 1 Chapter(s) : HR 5; ST 19.4.3 topic : Anomalies and extensions to the traditional model # of lectures : 3 Chapter(s) : HR 1; RT 1, 5-8 B. Game Theory topic : Preliminaries # of lectures : 1 Chapter(s) : D: 1, 2; ST: 3 topic : Strategies # of lectures : 4 Chapter(s) : D: 4, 5, 6; G: 1; ST: 3, 4, 5, 6 topic : Dynamic Games # of lectures : 3 Chapter(s) : D: 6, 7, 8; G: 2, 3; ST: 7, 8, 9, 10 topic : Moral Hazard # of lectures : 2 Chapter(s) : G: 3.1; ST: 12 topic : Adverse selection # of lectures : 2 Chapter(s) : G: 3.2, 4.1; ST: 12 topic : Signaling # of lectures : 2 Chapter(s) : G: 4.2, 4.3; D: 7, 8, 9 topic : Applications # of lectures : 3 Chapter(s) : D: 10, 11, 12, 13

No prerequisite has been provided

Knowledge in / Key concepts to master

Instructor approval

Teaching material

Mandatory tools for the course

No items in this list have been checked.

Documents in all formats

No items in this list have been checked.

Moodle platform

No items in this list have been checked.

Software

- Pack Office (Word, Excel, PowerPoint, Access)

Additional electronic platforms

No items in this list have been checked.

Recommended reading


Richard Thaler, The Winner’s Curse (RT) ; Dixit and Nalebuff, The Art of Strategy (D); Gibbons, Game Theory for Applied Economists (G); Tadelis, Game Theory (ST);

Machina, M., "Choice Under Uncertainty: Problems Solved and Unsolved," Journal of Economic Perspectives 1(1), Summer 1987, 121-154 ; Kahneman, D., Knetsch, J., and R. Thaler, "The Endowment Effect, Loss Aversion, and Status Quo Bias," Journal of Economic Perspectives 5(1), 1991, 193-206 ; Tversky, A., and R. Thaler, "Preference Reversals, "Journal of Economic Perspectives 4(2), 1990, 201-211 ; Lowenstein, G. and R. Thaler, “Intertemporal Choice,” Journal of Economic Perspectives 3(4), 1987, 181-93.

EM Research: Be sure to mobilize at least one resource

Textbooks, case studies, translated material, etc. can be entered
No reading material has been provided.

Assessment

List of assessment methods

Intermediate assessment / continuous assessment 1Other (date, pop quiz, etc.) : -
Written / Group / English / Weight : 33 %
Details : a written group assignment Group assignments will be due the following Thursday
Intermediate assessment / continuous assessment 2Other (date, pop quiz, etc.) : -
Oral / Individual / English / Weight : 33 %
Details : face-to-face individual discussions related to the group assignment Individual discussions will be scheduled for the start of the second week of the course
Final evaluationOther (date, pop quiz, etc.) : -
Written / Individual / English / Weight : 34 %
Details : Final examination will be done online, to be submitted by the Monday after the course ends
No assessment methods have been attributed to this course yet.