Course description
Game theory, including theory and concepts for non-cooperative games in the normal and extensive forms, including games of incomplete information. An introduction to the economics of information, presenting models of moral hazard, adverse selection, and signaling.
Reading list
- Game Theory
Watson, Joel, 2002, Strategy: an introduktion to game theory, Norton. Chapters 1-7, 9, 11, 13-15, 18-20, 22. Moreover, selected applications in chapters 8, 10, 16, 21, 23 will be considered.
- Economics of Information
Watson, Joel, 2002, Strategy: an introduktion to game theory, Norton. Chapters 24-29.
Macho-Stadler, I. & Perez-Castrillo, J. D. , 2001, An introduction to the economics of information: incentives and contracts (Second edition) Oxford. Chapters 1-5, except 3A.2, 3A.3, 3B, 3C.5, 4.4, 4A, 4B.2, 4B.4, 4B.5, 5.5, 5A, 5B.1, 5B.2 and 5C.