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- Liberal arts and basic science courses
- Academic unit or major
- Graduate major in Industrial Engineering and Economics
- Instructor(s)
- Kawasaki Ryo Undecided
- Class Format
- Lecture
- Media-enhanced courses
- Day/Period(Room No.)
- Mon7-8(W935) Thr7-8(W935)
- Group
- -
- Course number
- IEE.B403
- Credits
- 2
- Academic year
- 2016
- Offered quarter
- 2Q
- Syllabus updated
- 2016/5/27
- Lecture notes updated
- -
- Language used
- Japanese
- Access Index
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Course description and aims
This course covers the elementary topics in noncooperative game theory. These topics include (1) games in strategic form, dominated strategies, Nash equlibrium; (2) potential games and supermodular games; (3) games in extensive form, subgame-perfect equilibrium, sequential equilibrium, and trembling-hand perfect equilibrium; and (4) repeated games; (5) games with incomplete information.
In recent years, game theory has been extensively used in theoretical economics. This course is intended to provide students with knowledge of noncooperative game theory for application to complex economic systems.
Student learning outcomes
By taking this course, students will have developed the following skills:
1) Build an economic model using advanced noncooperative game theory
2) Calculate Nash equilibria, subgame-perfect equilibria, sequential equilibria, etc. of games given in strategic form and extensive form.
3) Think logically and explain complex social phenomenon using game theory
4) Read theoretical academic papers that use noncooperative game theory.
Keywords
Games in strategic form, Nash equilibrium, potential games, supermodular games, games in extensive form, subgame-perfect equilibrium, sequential equilibrium, trembling-hand perfect equilibrium
Competencies that will be developed
| ✔ Specialist skills | Intercultural skills | Communication skills | Critical thinking skills | Practical and/or problem-solving skills |
Class flow
This course will be held in lecture form. If time allows, some exercise problems will be explained.
Course schedule/Required learning
| Course schedule | Required learning | |
|---|---|---|
| Class 1 | Definition of a strategic form game, dominated strategies | Details will be given in each lecture. |
| Class 2 | Iterated removal of dominated strategies | |
| Class 3 | Nash equilibrium | |
| Class 4 | The proof of the existence of Nash equilibrium | |
| Class 5 | Potential games | |
| Class 6 | Monotone comparative statics | |
| Class 7 | Supermodular games | |
| Class 8 | Review of Lectures 1-7 and midterm exam | |
| Class 9 | Rigorous definition of games in extensive form | |
| Class 10 | Subgames and subgame-perfect equilibrium | |
| Class 11 | Repeated games and the Folk Theorem | |
| Class 12 | Perfect Bayesian equilibrium, sequential equilibrium, trembling-hand perfect equilibrium | |
| Class 13 | Games with incomplete information (1) - Bayesian games, Bayesian Nash equilibrium | |
| Class 14 | Games with incomplete information (2) - Applications | |
| Class 15 | Review of Lectures 9-14 |
Textbook(s)
No textbook. Lecture notes will be uploaded on the OCW-i page.
Reference books, course materials, etc.
Okada, A. Game Theory (New Edition) Tokyo: Yuhikaku, 2011. (Japanese)
Vega-Redondo, F. Economics and the Theory of Games. Cambridge: Cambridge University Press, 2003.
Mas-Colell, A., M. Whinston, and J. Green. Microeconomic Theory. New York: Oxford University Press, 1995.
Assessment criteria and methods
Homework (approximately 30%), midterm exam (approximately 30%), final exam (approximately 40%)
Related courses
- IEE.B401 ： Advanced Microeconomics
- IEE.B402 ： Advanced Macroeconomics
- IEE.B404 ： Advanced Cooperative Game Theory
- IEE.B405 ： Advanced Econometrics
- IEE.B431 ： Advanced Topics in Microeconomics
Prerequisites (i.e., required knowledge, skills, courses, etc.)
Knowledge of undergraduate level of game theory is required.
