Game Theory with Economic Applications

Catalog description

Topics from the field of game theory applied to numerous economic problems. Equilibrium concepts are derived to determine the outcome of economic agents pursuing individual self-interest in a "non-cooperative" environment. Specific tools included: multi-person decision trees, expected utility theory, Bayes Theorem, and several classes of games. Economic applications may include: wage bargaining, strategic trade policy, adverse selection and credit rationing, strikes, cartel enforcement, insurance, patents, and product variety. Prerequisite: ECO 315 .