ULMS Electronic Module Catalogue

The information contained in this module specification was correct at the time of publication but may be subject to change, either during the session because of unforeseen circumstances, or following review of the module at the end of the session. Queries about the module should be directed to the member of staff with responsibility for the module.
Title GAME THEORETICAL APPROACHES TO MICROECONOMICS
Code ECON322
Coordinator Dr CW Bach
Economics
C.W.Bach@liverpool.ac.uk
Year CATS Level Semester CATS Value
Session 2021-22 Level 6 FHEQ First Semester 15

Pre-requisites before taking this module (other modules and/or general educational/academic requirements):

ECON111 MATHEMATICS FOR ECONOMICS AND BUSINESS; ECON112 STATISTICS FOR ECONOMICS AND BUSINESS; ECON113 MATHEMATICAL ECONOMICS 

Modules for which this module is a pre-requisite:

 

Programme(s) (including Year of Study) to which this module is available on a required basis:

 

Programme(s) (including Year of Study) to which this module is available on an optional basis:

 

Teaching Schedule

  Lectures Seminars Tutorials Lab Practicals Fieldwork Placement Other TOTAL
Study Hours     10

    24

12

46
Timetable (if known)           120 mins X 1 totaling 24
 
 
Private Study 104
TOTAL HOURS 150

Assessment

EXAM Duration Timing
(Semester)
% of
final
mark
Resit/resubmission
opportunity
Penalty for late
submission
Notes
Assessment 1: Online open book assessment Assessment Type: Written Exam Duration: 72 hours (Expected completion time 2-3 hours) Weighting: 50% Reassessment Opportunity: Yes Penalty for   72 hours (Expected c    50       
Assessment 2: Online open book assessment Assessment Type: Written Exam Duration: 72 hours (Expected completion time 2-3 hours) Weighting: 50% Reassessment Opportunity: Yes Penalty for L  72 hours (Expected c    50       
CONTINUOUS Duration Timing
(Semester)
% of
final
mark
Resit/resubmission
opportunity
Penalty for late
submission
Notes
             

Aims

The objective of the module is to provide an introduction to game theory. This is the study of strategic interactions ie situations where outcomes depend not only on our own actions but also how others react to our actions. This module complements those in core macro and microeconomics and offers more insight into strategic decisions and competitive behaviour in general.


Learning Outcomes

(LO1) Distinguish between types of games

(LO2) Explain game theoretical concepts

(LO3) Conduct advanced microeconomic analysis by formulating a game and its associated solution concepts and deriving solutions to games

(LO4) Apply games in a range of economic, business and social contexts

(LO5) Explain the importance of game theoretic approaches in economic analysis

(S1) Problem Solving Skills

(S2) Numeracy

(S3) Commercial Awareness

(S4) Teamwork

(S5) Organisational Skills

(S6) Communication skills

(S7) IT skills

(S8) International awareness

(S9) Lifelong learning skills

(S10) Ethical awareness


Teaching and Learning Strategies

Teaching Delivery: Mixed, hybrid delivery with social distancing on campus.

Teaching Method: Online Asynchronous Learning Materials
Unscheduled Directed Student Hours: 24
Attendance Recorded: No

Teaching Method - Tutorial
Scheduled Directed Student Hours: 10
Attendance Recorded: Yes

Teaching Method: Group study
Description: Weekly 1 hour session to foster student community and engagement by working with others on their ‘active learning’ activities
Scheduled student hours: 12
Attendance recorded: No

Self-Directed Learning Hours: 104
Description: These independent learning hours are aimed at supporting the directed student learning. The module leader will provide guidance in the form of suggested readings and topics to examine with the expectation that students are well prepared to contribute to the tutorial activities and to understand the content of lectures. Self-Directed Learning will include research activity, developing academic writing skills, and wider reading to support the module

Weeks 1-6: PART I – Static Games
Taught by Dr Robert R. Routledge
Recorded lectures in weeks 1-5
Face to face tutorials in weeks 1-5, where teams of students will be guided through solutions to the tutorial questions.
Online-only students will be able to access online recordings of tutorials and virtual office hours with the lecturer.
Lecture and tutorial free revision week in week 6
There will be an online assessment in week 6 of the semester, with a minimum of 24 hours to complete.

Weeks 7-12: PART II – Dynamic Games
Taught by Dr Christian W. Bach
Recorded lectures in weeks 7-11
Face to face tutorials in weeks 7-11, where teams of students will be guided through solutions to the tutorial questions.
Online-only students will be able to access online recordings of tutorials and virtual office hours with the lecturer.
Lecture and tutorial free revision week in week 12
There will be an online assessment in week 12 of the semester, with a minimum of 24 hours to complete.

Costs Information:
There are no specific costs attached to this module.

There are the following non-modular requirements:
ECON112 with either ECON111 or ECON113

Skills/Other Attributes Mapping

Skills / attributes: Numeracy
How this is developed: Lectures and tutorials
Mode of assessment (if applicable): Examination and Mid-Term

Skills / attributes: Problem Solving Skills
How this is developed: Lectures and tutorials
Mode of assessment (if applicable): Examination and Mid-Term

Skills / attributes: Commercial Awareness
How this is developed:
Mode of assessment (if applicable):

Skills / attributes: Teamwork
How this is developed:
Mode of assessment (if applicable):

Skills / attributes: Organisational Skills
How this is developed:
Mode of assessment (if applicable):

Skills / attributes: Communication Skills
How this is developed:
Mode of assessment (if applicable):

Skills / attributes: IT Skills
How this is developed:
Mode of assessment (if applicable):

Skills / attributes: International Awareness
How this is developed:
Mode of assessment (if applicable):

Skills / attributes: Lifelong Learning Skills
How this is developed:
Mode of assessment (if applicable):

Skills / attributes: Ethical Awareness
How this is developed:
Mode of assessment (if applicable):


Syllabus

 

List op Topics (tentative)

GAMES AND DOMINATION
1.Introduction to Strategic Games
2.Dominated Strategies
3.Game: Prisoners' Dilemma
4.Iterated Elimination of Dominated Strategies

BEST RESPONSES AND NASH EQUILIBRIUM
1.Best Responses
2.Game: Price Competition with Differentiated Products
3.Nash Equilibrium
4.Game: Cournot Competition

APPLICATIONS OF NASH EQUILIBRIUM
1.The Non-cooperative Foundation of Perfect Competition
2.Game: The Problem of the Commons
3.Game: Auctions

MIXED STRATEGIES
1.Mixed Strategies
2.Mixed Strategy Nash Equilibrium
3.The Fundamental Lemma
4.Existence of Nash Equilibrium

APPLICATIONS OF MIXED STRATEGY NASH EQUILIBRIUM
1.Recap: Interpretation of Mixed Strategies
2.Game: Inspection Games
3.Game: Civic duty and Genovese syndrome

BACKWARD INDUCTION AND SPNE
1. Game: A Venture Capital game
2. Backward Induction
3.Game: Stackelberg competiti on
4.Subgame Perfect Nash Equilibrium

SPNE AND APPLICATIONS
1.Extensive Games
2.Game: Strategic Investment
3.Game: Sequential Bargaining
4.Game: Tariffs and International Competition

STATIC GAMES OF INCOMPLETE INFORMATION
1.Static Bayesian Games
2.Bayesian Nash Equilibrium
3.Game: Cournot competition with cost uncertainty

APPLICATION OF BAYESIAN GAMES
1.Harsanyi’s Purification Theorem
2.Second-Price Auction with incomplete information
3.First-Price Auction with incomplete information

DYNAMIC GAMES OF INCOMPLETE INFORMATION
1.Perfect Bayesian Equilibrium
2.Information Unravelling and Signalling
3.Game: Job Market signalling


Recommended Texts

Reading lists are managed at readinglists.liverpool.ac.uk. Click here to access the reading lists for this module.