Lahore University of Management Sciences

ECON 233 – Introduction to Game Theory

Spring 2018

Instructor Amin Hussain

Room No. 151, Economics Wing, Ground Floor, Academic Block
Office Hours TBA
Email amin.hussain@lums.edu.pk
TA
TA Office Hours

Course Basics
Credit Hours 4
Lecture(s) Nbr of Lec(s) Per Week 4 Duration 110 mins
Tutorial (per week) Nbr of Lec(s) Per Week Duration

Course Distribution
Core
Elective Yes
Open for Student Category Freshman, Sophomore, Junior, Senior
Close for Student Category

COURSE DESCRIPTION
Game Theory is the study of strategic situations i.e. where the outcomes for individuals depends on their own actions as well as the actions of
others. As such it has a wide range of applications in many fields including Economics, Political Science, Law and Sports. This course introduces
the fundamental principles, techniques and notation of Game Theory as well as some basic insights provided by some well-known games.

COURSE PREREQUISITE(S)

 Statistics and Data Analysis

Calculus 1

COURSE OBJECTIVES

 Students should be able to understand the basic techniques associated with Game Theory

Students should know the common applications of Game Theory and recognize various games in different situations.

Grading Breakup and Policy

Quizzes: 20 % (4 + 1)
Assignments: 15%
Midterm Examination: 30%
Final Examination: 35%

Examination Detail
 Lahore University of Management Sciences
Yes/No: Yes
Midterm Combine Separate: Combined
Exam Duration:
Exam Specifications: Closed books and notes, help sheet not allowed, calculator usage allowed

Yes/No: Yes
Combine Separate: Combined
Final Exam
Duration: 3 hours
Exam Specifications: Closed books and notes, help sheet not allowed, calculator usage allowed

Recommended
Module Topics
Readings

1 Introduction Watson Ch 1

Concepts and Techniques Watson Ch 2, 3, 4, 5, 6, 7, 8, 9, 10, 11

 Static games
 Normal and Extensive Forms
2  Dominance and Iterated Dominance
 Pure Strategy Nash Equilibrium
 Mixed Strategy Nash Equilibrium
 Continuous Strategy Spaces

Watson Ch 14, 15, 18, 19

Dynamic Games
 Revisiting Strategies and Extensive Forms
 Sequential Rationality and Subgame Perfection
3
 Dynamic Games with Continuous Strategy Spaces
 Duopoly Models
 Bargaining Problems

Repeated Games Watson Ch 22, 23

 Finitely Repeated Games
4  Infinitely Repeated Game
 Reputations and Cooperation

Bayesian Games
 Incomplete Information Watson Ch 24,26,27,28
5
 Bayesian Nash Equilibrium
 Perfect Bayesian Nash Equilibrium

Handout to be provided
6
Evolutionary Game Theory

Textbook(s)/Supplementary Readings
 Lahore University of Management Sciences

 Joel Watson. Strategy: An Introduction to Game Theory. 3rd Edition. Norton. 2013

 Other material will be provided during the course