Game theory and information in economics

LECGE1333  2019-2020  Louvain-la-Neuve

Game theory and information in economics
5.0 credits
30.0 h + 10.0 h
2q

Language
Anglais
Main themes
The first part of the course provides the basis of decision theory and game theory. The second part is devoted to the economy of uncertainty. The third part is devoted to the Information Economy
Aims

  • 1 This course is designed for students of the orientation of the economy Bac ECGE (BAC3) who want to deepen the analysis of economic problems associated with uncertainty and information based on the tools of decision theory and games. The themes of uncertainty and information are vast. We chose to address the most important during the first ten weeks. We suggest a range of topics of interest for weeks: each year, specific topics will be treated according to the needs and tastes of students attending the course. An initial list of topics of interest is suggested. At the end of the course, students will master the theory of games used in the uncertain economy and information and be able to apply to economic problems in concrete they are relevant as tools for analysis and decision support.

The contribution of this Teaching Unit to the development and command of the skills and learning outcomes of the programme(s) can be accessed at the end of this sheet, in the section entitled “Programmes/courses offering this Teaching Unit”.

Content

The course is divided into five chapters:

Chapter 1 Decision theory: preferences, utility, loteries, uncertainty, risk aversion

Chapter 2 Non-cooperative games: strategic form, best replies, dominant strategy,
Nash equilibria, extensive form, backward induction, subgame perfection,

Chapter 3 Two-player bargaining: axiomatic solutions.

Chapter 4 Cooperative games with transferable utility: characteristic function, cost sharing, core, Shapley value, normative applications.

Chapter 5 Voting games: weighted majority voting games, power indices.

Teaching methods

Lectures and exercises sessions

Evaluation methods

The grade will be determined by a final written examination

Online resources

Lecture notes and homeworks for the exercises sessions available on Moodle 

Bibliography

 

 

Faculty or entity


Programmes / formations proposant cette unité d'enseignement (UE)

Program title
Sigle
Credits
Prerequisites
Aims
Minor in Economics
5
-

Master [120] in Environmental Bioengineering
5
-

Bachelor in Philosophy, Politics and Economics
5
-

Master [120] in Agricultural Bioengineering
5
-

Additionnal module in Economics
5
-

Master [120] in Forests and Natural Areas Engineering
5
-

Additionnal module in Mathematics
5
-

Master [120] in Chemistry and Bioindustries
5
-