- 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”.
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.
Lectures and exercises sessions
The grade will be determined by a final written examination
Lecture notes and homeworks for the exercises sessions available on Moodle