[ Syllabus ] [ Class List ]
Economics 703: Advanced Microeconomics
Professor Peter Cramton
Tuesday and Thursday, 9:30 am to 10:45 am, Tydings 0111, Fall 2009
Presents a formal treatment of game theory. We begin with extensive-form games. A game
tree is defined, as well as information sets and pure, mixed and behavioral strategies.
Existence of Nash equilibria is discussed. We then turn to the analysis of dynamic games,
covering repeated games, finitely repeated games, the folk theorem for repeated games,
subgame perfection, and punishment strategies. Next, games with incomplete information are
studied, including direct revelation games, concepts of efficiency, and information
transmission. Several refinements of Nash equilibria are defined, such as sequential
equilibria and stable equilibria. The analysis of enduring
relationships and reputations is covered. The course concludes with a discussion of two
important applications of game theory: auctions and bargaining. The topics include
sealed-bid auctions, open auctions, private valuation and common valuation models, the
winner's curse, auction design, bargaining with incomplete information, and
combinatorial auctions.
Course Materials
Web exercises can be found at
http://gametheory.tau.ac.il/student/. You log in with the course number
1661 and your email address. The class password is 4690. It is
case sensitive. Web exercises we have completed so far have active links below:
Web Exercise 1
Web Exercise 2
Web Exercise 3
Web Exercise 4
Web Exercise 5