ECONOMICS 0200 Game Theoretic Principles

Fall 2011

Instructor: Katherine Willey Wolfe E-mail: kwolfe@pitt.edu Office: 4702 Posvar Hall Phone: 412-648-5148 Mailbox: 4700 Posvar Hall Office Hours: Friday 9:30 – 2:30 Prerequisites: This course uses algebra at the level of MATH 0031. Course Objective: This course introduces the basic concepts of game theory. The emphasis is on the unifying perspective that game theory offers to questions in economics, in other disciplines, and to everyday life. It will enable students to view interactions as strategic games and to use game theoretic concepts to predict and to explain behavior in these interactions. Textbook: Joseph E. Harrington, Games, Strategies, and Decision Making, Worth Publishers (2009). ISBN: 0-7167-6630-2. The textbook is available at the bookstore and from on-line booksellers. The textbook covers most of the same material as the lectures, using different explanations and different examples. Homework problems will be assigned from the textbook. Courseweb: This course will use the University’s Courseweb system: http://courseweb.pitt.edu. Students who are registered for the course can access their grades on-line. Any communication regarding changes in the schedule or revisions to the syllabus will sent via courseweb’s email list to your University email account. If you use another email account, arrange to have your University email forwarded. Assignments: The homework assignments allow you to synthesize the concepts you have studied so far and apply them to a variety of real and hypothetical situations. These assignments are more complex than the problems covered in lecture. The assignments will be posted each week on courseweb and are to be submitted in class. Because we will discuss the assignments in class when they are handed in and because I will post the answers to courseweb, late assignments will not be accepted. Tests and Exams: There will be three tests and an optional final exam. The tests and exams will consist of short problems. Tests will be during scheduled lecture times. There will be an optional cumulative final exam for students who want to try to improve their grade. The final exam has been scheduled by the registrar for Tuesday, December 13th.

Life Happens: There are dozens of you in this class. The odds are that one (or more) of you will break up with your significant other, catch a stomach virus, need to attend a funeral, or get stuck on the Parkway because of an accident. Or any one of a number of other unexpected events may occur that prevent you from completing your work on time. I understand, but, I don’t want to waste your time or mine verifying your excuses. So, everyone gets one unexpected event per semester – I will count only 10 of your 11 assignments. Makeup test, however, will only be given if you provide verification of illness from a healthcare provider. Grading: Your learning will be assessed through assignments, tests, and the optional final exam. There are two possible grading schemes:

Without final exam: With optional final exam: Assignments 40% Assignments 40% Test 1 20% Test 1 10% Test 2 20% Test 2 10% Test 2 20% Test 3 10% Final exam 30% If you opt to take the final, I will calculate your grade under both schemes and give you the better grade. (So you don’t need to worry about decreasing your grade by taking the final.) And no, there is nothing else besides the final that you can do after a poor performance on an assessment to improve your grade: no extra credits, no retakes. Seeking help: The material in thes course is highly cumulative. Therefore, if you don’t understand something, seek help from me immediately!. Academic Integrity: Students are expected to abide by the University’s policy on academic integrity. Students may work collaboratively on assignments, however, you may not simply copy another student’s work. Plagiarism of any kind will result in a failing grade for the course. Accommodations for students with disabilities: If you have a disability for which you are or may be requesting an accommodation, you are encouraged to contact both your instructor and Disability Resources and Services, 216 William Pitt Union, 412-648-7890 or 412-383-7355 (TTY) as early as possible in the term.

ECON 0200 Fall 2011 Schedule

Date Topic Reading Aug 30 Lecture #1: What is a game? Chapter 1 Sep 1 Lecture #2: Modeling games Chapter 2 Sep 6 Lecture #3: Best response Chapter 3 Sep 8 Lecture #4: Domination Sep 13 Lecture #5: Nash Equilibrium part I Chapter 4 Sep 15 Lecture #6: Nash Equilibrium part II Section 5.4 Sep 20 Lecture #7: Mixed strategies part I Chapter 7 Sep 22 Lecture #8: Mixed strategies part II Sep 27 Review Sep 29 Test #1 Oct 4 Lecture #9: Sequential games with perfect info Chapter 8 Oct 6 Lecture #10: Sequential games with imperfect info part I Oct 13 Lecture #11: Sequential games with imperfect info part II Chapter 9 Oct 18 Lecture #12: Sequential games with private info part I Chapter 10 Oct 20 Lecture #13: Sequential games with private info part II Oct 25 Lecture #14: Signaling Chapter 11 Oct 27 Lecture #15: More fun with Bayes-Nash Equilibrium Nov 1 Review Nov 3 Test #1 Nov 8 Lecture #16: Continuous Strategy Space part I Chapter 6 Nov 10 Lecture #17: Continuous Strategy Space part II Nov 15 Lecture #18: n-player games part I Chapter 5 Nov 17 Lecture #19: n-player games part II Nov 22 Day of the Games Nov 29 Lecture #20: Repeated Games part I Chapter 13 Dec 1 Lecture #21: Repeated Games part II Chapter 14 Dec 6 Review Dec 8 Test #1 Dec 13 Optional Final Exam

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University of Pittsburgh Spring Term 2012 Professor John Duffy Class Number: 25218

Economics 200 Game Theory Principles

 Course Description: This course introduces students to the basic concepts of game theory, which is the theory of strategic interactions. The emphasis is on the unifying perspective that game theory offers to questions in economics, and many other disciplines including biology, political science as well as everyday life. The basic concepts of game theory will be presented using a wide range of substantive and intellectually stimulating applications. After completing this course students will be able to view social interactions as strategic games, to use game theoretic concepts to predict behavior in these interactions and to conceive of ways in which altering the rules of the game will affect social outcomes. Lectures: Tuesdays and Thursdays, 1:00-2:15pm, 1700 W.W. Posvar Hall Office: 4929 W.W. Posvar Hall Office Hours: Wednesdays 3:00-5:00pm Email: jduffy@pitt.edu Tel: 412-648-1733 Textbook: Game Theory: A Nontechnical Introduction to the Analysis of Strategy, Revised Ed., by Roger A. McCain, World Scientific Publishers, 2010. You can purchase this textbook at the Book Center or online. It is also available as an e-book. Lecture Slides: I will post the lecture slides and homework answer keys on the University of Pittsburgh’s Blackboard (CourseWeb) site: http://courseweb.pitt.edu Homework, Examinations and Grading: There will be three examinations in this course, two midterms and a final examination. In addition there will be six homework assignments. Your grade for the course will be determined as follows:

Homework Assignments 10%First Midterm Examination 25%

Second Midterm Examination 25%Final Examination 40%

Grader: Martin Saavedra, Email: mhs33@pitt.edu, Tel: 412-648-1766, Office: 4523 W.W. Posvar Hall, Office hours: Wednesdays 1:00-2:00pm Missed Examination and Homework Policy: I will provide make--up examinations only to those who missed an examination because of an unforseen event, e.g., a medical emergency, the death of a family member, etc. Written confirmation will be required. Late homeworks are not accepted. There is no extra credit. Academic Integrity: Should issues concerning academic integrity arise, the University of Pittsburgh's Guidelines on Academic Integrity will be strictly enforced.

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Course Schedule and Readings (Subject to Change-Check CourseWeb Announcements)

Date Topic / Exams / Homework Readings*

1/05/12-1/12/12 Basic Game Theory Concepts Chapters 1-2

1/17/12-1/19/12 Dominance, Nash Equilibrium Homework 1 Due 1/19

Chapters 3-4

1/24/12-1/26/12 Zero-Sum and Coordination Games Chapter 5

1/31/12-2/02/12 Duopoly Games Homework 2 Due 2/02

Chapter 6

2/07/12-2/09/12 Midterm Exam 1 on 2/07 during class Review Answers on 2/09

2/14/12-2/16/12 Three-Person Games, Probability Review Chapters 7-8

2/21/12-2/23/12 Expected Utility Theory, Mixed Strategies Homework 3 Due 2/23

Chapters 8-9

2/28/12-3/01/12 More on Mixed Strategies Chapter 9

3/06/12-3/08/12 Spring Recess

3/13/12-3/15/12 N-Player Games, Homework 4 Due 3/15

Chapter 10

3/20/12-3/22/12 Midterm Exam 2 on 3/20 during class Review Answers on 3/22

3/27/12-3/29/12 Sequential Move Games Chapter 12

4/03/12-4/05/12 Subgame Perfection Homework 5 Due 4/05

Chapter 13

4/10/12-4/12/12 Finitely Repeated Games Chapter 14

4/17/12-4/19/12 Indefinitely Repeated Games Homework 6 Due 4/19

Chapter 15

4/26/12 Final Exam, Thursday, April 26, 10:00-11:50am

*All readings are from the McCain, Game Theory textbook.

Game Theory Principles (Econ 0200) MW 6:00 PM – 9:15 PM Summer 2012 (6-week 1) 4716 W.W. Posvar Hall

Instructor Michael LeGower mjl88@pitt.edu Office: 4513 W.W. Posvar Hall Office Hours: MW 1:00 PM - 3:00 PM Course Description: This course introduces students to the basic concepts of game theory, which is the analysis of strategic decision-making. The emphasis in this course is on reasoning and understanding rather than memorizing. After completing this course students will be able to view a wide range of economic, political, and even biological interactions as strategic game; the use game theoretic concepts to predict behavior in these interactions; and to conceive of ways in which altering the rules of these games will affect outcomes. Textbook: The recommended textbook (available at the bookstore) for the course will be: Games of Strategy, 3rd Edition by Avinash Dixit and Susan Skeath. However, lectures will not follow this text (or any other) explicitly. All homeworks, assignments, exams, and graded material will come from material covered in lecture. Consequently, previous versions of the book are more than sufficient. Lecture: Lectures will be held from 6:00 PM to 9:15 PM on Monday and Wednesday at 4716 W.W. Posvar Hall. Regular attendance is expected and, in light of the guidance above, will be critical to success on assignments and exams. Lecture slides from the most recent class will be posted to Courseweb within 24 hours of the lecture. In addition, I will be available during office hours to answer questions and provide whatever assistance I can. Homework, Exams, and Grading: There will be two midterms during the semester and a final exam at the end. Each midterm exam will carry 25% of the grade, the final exam will carry 40%, and the remaining 10% of the grade will be based on the homework assignments. Homeworks will be assigned on Wednesday each week and you are required to submit them before the end of the following class. Late homework will not be accepted, nor will extra credit be available. I will provide make-up exams only to those individuals who miss due to an unforeseen event, i.e. medical emergency or death in the family. Poorly made travel arrangements do not qualify. Miscellany: Students with disabilities are responsible for notifying me at the start of a course and for requesting accommodations for that disability.

All students are expected to abide by the University of Pittsburgh's policy on academic integrity. Please familiarize yourself with this policy if you have not already done so. I will make extensive use of Courseweb so please check regularly for announcements, updates, assignments, and grades. In addition, I will try to keep you apprised of updates as they arise via email. Course materials will also be available on my personal web site (http://www.pitt.edu/~mjl88). Tentative Itinerary: • May 14th: Introduction • May 16th: Sequential Move Games • May 21st: Simultaneous Move Games • May 23rd: Simultaneous Move Games, cont.

Midterm #1 • May 28th: Probability Theory • May 30th: Mixed Strategies • June 4th: Subgame Perfection and Strategic Moves • June 6th: Repeated Games

Midterm #2 • June 11th: Incomplete Information and Signaling Games • June 13th: Bargaining • June 18th: Voting • June 20th: Auctions

Final Exam Last updated, May 7th

ECON 0200: Game Theory (Class # 289991, Fall, 2013)

Professor and TA:

Mehmet Ekmekci, Associate Professor of Economics, University of Pittsburgh, mekmekci@pitt.edu

Martin Saavedra, mhs33@pitt.edu

Location and Time: OEH 316, M/W 3:00-4:15 pm., Office hours by appointment.

Description:

This course is an introduction to game theory and strategic thinking. Ideas such as dominance, backward induction, Nash equilibrium, evolutionary stability, commitment, credibility, asymmetric information, adverse selection, and signaling are discussed and applied to games played in class and to examples drawn from economics, politics, the movies, and elsewhere.

Texts:

A. Dixit and B. Nalebuff. Thinking Strategically, Norton 1991

J. Watson. Strategy: An Introduction to Game Theory, Norton 2002

P.K. Dutta. Strategies and Games: Theory And Practice, MIT 1999

Requirements:

Who should take this course? This course is an introduction to game theory. We will use calculus (mostly one variable) in this course. We will also refer to ideas like probability and expectation.

Course Aims and Methods. Game theory is a way of thinking about strategic situations. One aim of the course is to teach you some strategic considerations to take into account making your choices. A second aim is to predict how other people or organizations behave when they are in strategic settings. We will see that these aims are closely related. We will learn new concepts, methods and terminology. A third aim is to apply these tools to settings from economics and from elsewhere. The course will emphasize examples. We will also play several games in class.

Outline and Reading. Most of the reading for this course comes from the first ten chapters of Dutta or from the first two parts of Watson. There will be a reading packet for weeks 6-7. The readings are not compulsory, but they will help back up the class material.

Grading:

Problem sets: 30% Midterm examination: 30% Final examination: 40%

Spring 2014

Economics 0200Principles of Game Theory

This version: January 20, 2014

Class time and place: Tuesday and Thursday from 1:00-2:15pm at WWPH 1500

Coverage: The aim of this course is to introduce the basic principles of game theory to you. Game theoryhas two parts. First, it is a language to describe a strategic interaction. It formalizes problems such as: FirmA first sets its price, then Firm B sets its price, then consumers decide where to buy. Game theory, however, isrich enough to describe much more interesting environments, starting from arms races to the problem of findingout which physicians are good. Second, game theory proposes solution concepts. It tries to predict what rationalplays would do if they were faced with the situation. In the example above: Which price should Firm A set? Youwill see that the basic idea how economists think about the solution to a game-theoretic situation is always thesame, with some adjustments to a specific context. The specific context is whether all players act at the sametime or subsequently, and whether there are aspects that are known to some players but not to others.

Instructor: Tymofiy Mylovanov, WWPH 4714, mylovanov@gmail.comoffice hours: Wednesday 3:00-5:00pm or by appointment

Teaching Assistant: Martin Saavedra, WWPH 4523, mhs33@pitt.eduoffice hours: Monday 2:00-4:00pm or by appointment

Texts Watson, J., Strategy: An Introduction to Game Theory, 2nd edition.

A. Dixit and B. Nalebuff. Thinking Strategically, Norton 1991

P.K. Dutta. Strategies and Games: Theory And Practice, MIT 1999

Grading and Exams: Grades will be based on

1. 25%: Midterm exam I, in class on Tuesday, February 11.

2. 25%: Midterm exam II, in class on Tuesday, April 1.

3. 20%: Weekly homework assignments.

4. 30%: Final exam, location and time TBA.

The final is cumulative but with emphasis on the last part of the course. The exams are closed book (closedeverything). The homework assignments are weekly and will be available on blackboard; they will be due at thebeginning of the class on Tuesday. There will be no homework assignments due in the first week and in the weeksafter the midterm weeks (i.e., there will be assignment due on the date of the midterms, but not the followingweeks). The homework assignments could be discussed but should be written and submitted individually, as hard

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copies or as pdf files at mhs33@pitt.edu. Answers will typically be posted to blackboard the day the problem setis due. As a result, late problem sets will not be accepted. When computing the average problem set score tocalculate the grade, the two lowest individual score will be dropped. This allows for two missed problem sets, ifnecessary, without adverse consequences.

No class. There is a chance that there will be no class on one of the days and another class might besubstituted by another instructor. If this happens, the dates will be announced as soon as they become known.

Email. Please check your email settings on blackboard to make sure you receive emails. There will be a testemail message sent to the class list through blackboard on January 14.

Academic Integrity. All students are expected to adhere to the standards of academic honesty. Anystudent engaged in cheating, plagiarism, or other acts of academic dishonesty would be subject to disciplinaryaction. Any student suspected of violating this obligation for any reason during the semester will be required toparticipate in the procedural process , initiated at the instructor level, as outlined in the University Guidelineson Academic Integrity http://www.provost.pitt.edu/info/ai1.html. This may include, but is not limited tothe confiscation of the examination of any individual suspected of violating the University Policy.

Disability Services. If you have a disability, contact both your instructor and the Office of DisabilityResources and Services (DRS), 216 William Pitt Union, 412-648-7890/412-383-7355 (TTD) as early as possiblein the term. DRS will verify your disability and determine reasonable accommodations for this course.

Statement on Classroom Recording. To ensure the free and open discussion of ideas, students may notrecord classroom lectures, discussion and/or activities without the advance written permission of the instructor,and any such recording properly approved in advance can be used solely for the studentâĂŹs own private use

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ECON  0200:  Game  Theory  Principles  University  of  Pittsburgh  2013-­‐2014  Summer  Term  

 Syllabus  

   Dates:                          5/12/2014  -­‐  6/21/2014                                                                        Times:                        M  &  W  6–9:15  p.m.                                                                                          Location:              4716  Posvar  Hall  Office  hrs:          Th  2–4  p.m.    

Instructor:                David  Klinowski  Office:                                4522  Posvar  Hall  Phone:                                          412.648.5717  Email:                          djk59@pitt.edu  

 COURSE  DESCRIPTION  Game  theory  is  a  branch  of  mathematics  devised  to  study  strategic   interactions.   In  this  course  you  will  be  introduced  to  the  basic  elements  of  this  theory,  and  to  its  use  in   understanding   behavior   in   domains   as   diverse   as   the   stock   market,   business  market   entry,   political   elections,   military   conflict,   charitable   giving,   non-­‐human  animal  behavior,  and  plain  daily  life.  No  previous  knowledge  in  any  of  these  topics  is  necessary  to  succeed  in  this  course.  The  only  requisite  is  ability  to  do  algebra  at  the  level  of  MATH  0031  ("College  Algebra").    This  is  a  six-­‐week  course;  hence  the  content  will  be  covered  in  a  fast  pace.  Added  to  the  fact  that  topics  build  on  previous  topics,  this  means  that  you  will  need  to  devote  some  hours  of  work  every  week  for  the  entire  duration  of  the  term  in  order  to  keep  up  with  the  class.      COURSE  MATERIALS  The   recommended   textbook   is   Games   of   Strategy   by   Dixit   et   al.   3rd   ed.,   though  lectures  will  not  follow  its  structure  and  content  strictly.  All  assignments,  as  well  as  relevant  academic  and  news  articles  will  be  made  available  online  on  CourseWeb.    ASSESSMENT  OF  YOUR  UNDERSTANDING        Homework  (4):    40%                                      Midterm  Exam:    30%                                      Final  Exam:    30%    Homework:  Homeworks  will  be  assigned  on  certain  Wednesdays,  and  will  be  due  the  following  class.  Each  homework  assignment   is  worth  10%  of  your  grade.  Students  are  encouraged  to  work  collaboratively  on  the  homework  problems;  however,  each  student  must  submit  their  own  work.  Late  homeworks  will  not  be  accepted.    Midterm  exam:  The  midterm  exam  will  be  graded  and  returned  to  the  students  the  class   after   the   exam   date.   Students   will   then   have   the   opportunity   to   correct  mistakes  and  resubmit  the  exam  to  the  instructor  by  the  due  date.  For  any  question  that   the   student   corrects   in   its   entirety,   the   student   will   earn   half   of   the   points  initially  deducted  for  that  question.      

Extra   credit:  Homeworks  will   include   some   bonus-­‐points   questions.   There   are   no  other   extra-­‐credit   assignments.   Make-­‐up   exams   will   only   be   granted   for   medical  emergencies,  if  the  student  provides  proof  of  such  emergency  from  a  physician.    ASSESSMENT  OF  THE  INSTRUCTOR'S  PERFORMANCE  The  instructor  very  much  appreciates  to  hear  any  comments  that  may  help  him  to  improve   the   class,   especially   before   the   term   ends.   Please   feel   free   to   give   your  feedback  to  the  instructor,  by  talking/emailing  directly  with  him,  or  if  you  prefer,  by  leaving  anonymous  comments  on  the  instructor's  mailbox.    SCHEDULE  (TENTATIVE)  

Date   Topic  Textbook  chapters  

May  12   What  is  game  theory  and  why  was  it  created   1  ,  2  May  14   Elements  of  a  game   3  ,  4  May  19   Solution  concepts    —    HW  1  due   4  May  21   Further  solution  concepts   6,  10  May  26   Memorial  Day  (No  class)  

 May  28   Mixed  strategies    —    HW  2  due   7  ,  8  June  2   Midterm  exam  

 June  4   The  prisoners'  dilemma  and  the  tragedy  of  the  commons    

June  9  Repeated  interaction  as  a  solution  to  the  tragedy  of  the  commons    —    HW  3  /  Midterm  fixes  due   11  

June  11   Evolutionary  game  theory   13  

June  16  Correspondence  with  behavior:  the  ultimatum  game  /  Review    —    HW  4  due  

 June  18   Final  exam      

ACADEMIC  INTEGRITY  The   University   of   Pittsburgh's   Guidelines   on   Academic   Integrity   will   be   strictly  enforced.   You   are   encouraged   to   discuss   course   content   with   other   students;  however,   all   assignments  must  be   the   result  of   your   individual  work.  Any   student  engaged   in   cheating,   plagiarism,   or   other   acts   of   academic   dishonesty   may   be  subject   to   disciplinary   action,   including,   but   not   limited   to,   the   confiscation   of   the  assignment  and  a  grade  of  zero  points  for  the  assignment.    ACCOMMODATIONS  FOR  STUDENTS  WITH  DISABILITIES  If  you  have  a  condition  for  which  you  are  or  may  be  requesting  an  accommodation,  please   contact   the   instructor   as   well   as   Disability   Resources   and   Services,   216  William  Pitt  Union,  412.383.7890  or  412.383.7355  (TTY)  as  early  as  possible  in  the  term.  

Spring 2015

Economics 0200

Principles of Game Theory

This version: January 6, 2014

Class time and place: Tuesday and Thursday from 1:00-2:15pm at LAWRN00104

Coverage: The aim of this course is to introduce the basic principles of game theory to you. Game theory

has two parts. First, it is a language to describe a strategic interaction. It formalizes problems such as: Firm

A �rst sets its price, then Firm B sets its price, then consumers decide where to buy. Game theory, however, is

rich enough to describe much more interesting environments, starting from arms races to the problem of �nding

out which physicians are good. Second, game theory proposes solution concepts. It tries to predict what rational

plays would do if they were faced with the situation. In the example above: Which price should Firm A set? You

will see that the basic idea how economists think about the solution to a game-theoretic situation is always the

same, with some adjustments to a speci�c context. The speci�c context is whether all players act at the same

time or subsequently, and whether there are aspects that are known to some players but not to others.

Instructor: Tymo�y Mylovanov, WWPH 4925, mylovanov0200@gmail.com

o�ce hours: Wednesday 3:00-5:00pm or by appointment

Teaching Assistant: Marli Wang, WWPH 4516, mcw.econ@gmail.com

o�ce hours: Tuesday 2:00-4:00pm or by appointment

Texts Watson, J., Strategy: An Introduction to Game Theory, 2nd edition.

Thomas Schelling, Strategy of Con�ict

Grading and Exams: Grades will be based on

1. 25%: Midterm exam I, in class on Tuesday, February 10; no class February 12.

2. 25%: Midterm exam II, in class on Tuesday, March 31.

3. 20%: Weekly homework assignments.

4. 30%: Final exam, location and time TBA.

The �nal is cumulative but with emphasis on the last part of the course. The exams are closed book (closed

everything). The homework assignments are weekly and will be available on blackboard; they will be due at the

beginning of the class on Tuesday. There will be no homework assignments due in the �rst week and in the weeks

after the midterm weeks (i.e., there will be assignment due on the date of the midterms, but not the following

weeks). The homework assignments could be discussed but should be written and submitted individually, as

hard copies or as pdf �les at mcw.econ@gmail.com. Answers will typically be posted to blackboard the day the

problem set is due. As a result, late problem sets will not be accepted. When computing the average problem set

1

score to calculate the grade, the two lowest individual score will be dropped. This allows for two missed problem

sets, if necessary, without adverse consequences.

Review Sessions.

• Monday, February 9, 4-5:50pm, TBA

• Monday, March 30, 4-5:50pm, TBA

No class. There is a chance that there will be no class on one of the days and another class might be

substituted by another instructor. If this happens, the dates will be announced as soon as they become known.

Email. Please check your email settings on blackboard to make sure you receive emails. There will be a test

email message sent to the class list through blackboard on January 14.

Academic Integrity. All students are expected to adhere to the standards of academic honesty. Any

student engaged in cheating, plagiarism, or other acts of academic dishonesty would be subject to disciplinary

action. Any student suspected of violating this obligation for any reason during the semester will be required to

participate in the procedural process , initiated at the instructor level, as outlined in the University Guidelines

on Academic Integrity http://www.provost.pitt.edu/info/ai1.html. This may include, but is not limited to

the con�scation of the examination of any individual suspected of violating the University Policy.

Disability Services. If you have a disability, contact both your instructor and the O�ce of Disability

Resources and Services (DRS), 216 William Pitt Union, 412-648-7890/412-383-7355 (TTD) as early as possible

in the term. DRS will verify your disability and determine reasonable accommodations for this course.

Statement on Classroom Recording. To ensure the free and open discussion of ideas, students may not

record classroom lectures, discussion and/or activities without the advance written permission of the instructor,

and any such recording properly approved in advance can be used solely for the student's own private use

2

ECONOMICS 0200

Game Theoretic Principles

Fall 2015

Instructor: Katherine Willey Wolfe

E-mail: kwolfe@pitt.edu

Office: 4702 Posvar Hall

Mailbox: 4700 Posvar Hall

Office Hours: Tuesday and Thursday 9:00 – 1:30

Prerequisites: This course uses algebra at the level of MATH 0031.

Course Objective: This course introduces the basic concepts of game theory. The emphasis is on the unifying

perspective that game theory offers to questions in economics, in other disciplines, and to everyday

life. It will enable students to view interactions as strategic games and to use game theoretic

concepts to predict and to explain behavior in these interactions.

Textbook: Harrington, Joseph E., Games Strategies, and Decision Making, 2nd

edition, Worth

Publishers (2015). ISBN: 1-4292-3996-4. The textbook is available at the bookstore and from on-

line booksellers in hardcopy or looseleaf versions. The textbook covers most of the same material as

the lectures, using different explanations and different examples. Some homework problems will be

assigned from the textbook. If you cannot afford to buy the textbook, please arrange with your

classmates to share a copy.

Courseweb: This course will use the University’s Courseweb system: http://courseweb.pitt.edu.

Students who are registered for the course can access their grades on-line. Any communication

regarding changes in the schedule or revisions to the syllabus will sent via courseweb’s email list to

your University email account. If you use another email account, arrange to have your University

email forwarded.

Assignments: The homework assignments allow you to synthesize the concepts you have studied so

far and apply them to a variety of real and hypothetical situations. These assignments are more

complex than the problems covered in lecture.

The assignments will be posted each week on courseweb and are to be submitted in class. You must

printout the PDF sheets posted on courseweb, write your answers in the spaces provided and turn in

those sheets. If your handwriting is illegible, you may be required to type or word process your

answers.

Because we will discuss the assignments in class when they are handed in and because I will post

the answers to courseweb, late assignments will not be accepted.

Exams: There will be a midterm and a final exam. The exams will consist of short problems. The

midterm exam will be during scheduled lecture time. The final exam has been scheduled by the

registrar for Monday, December 14th

. I will not allow students to take either exam early. The final

is cumulative to the extent that the material is cumulative.

Life Happens: There are dozens of you in this class. The odds are that one (or more) of you will

break up with your significant other, catch a stomach virus, attend a funeral, or get stuck on the

Parkway because of an accident. Or any one of a number of other unexpected events may occur that

prevent you from completing your work on time. I understand, but, I don’t want to waste your time

or mine verifying your excuses. So, everyone gets one unexpected event per semester – I will count

only 10 of your 11 assignments. Makeup exams, however, will only be given if you provide

verification of illness from a healthcare provider.

In-class exercises: Occasionally, we will work on cooperative group assignments during the class

period. These exercises will be handed in for bonus points which will be added to your homework

grade. If you are not in class, you cannot earn points for in-class exercises.

Grading: Your learning will be assessed through assignments, tests, and the in class exercises,

weighted as follows:

Assignments 40%

Midterm 30%

Final 30%

Seeking help: The material in this course is highly cumulative. Therefore, if you don’t understand

something, seek help from me immediately!

Academic Integrity: Students are expected to abide by the University’s policy on academic

integrity. Students may work collaboratively on assignments, however, you may not simply copy

another student’s work. Plagiarism or cheating of any kind will result in a failing grade for the

course.

Accommodations for students with disabilities: If you have a disability for which you are or may

be requesting an accommodation, you are encouraged to contact both your instructor and Disability

Resources and Services, 216 William Pitt Union, 412-648-7890 or 412-383-7355 (TTY) as early as

possible in the term.

ECON 0200 Fall 2015

Schedule

Date Topic Assignments Reading

Sep 1 Lecture #1: What is a game? Chapter 1

Sep 3 Lecture #2: Modeling games I

Sep 8 Lecture #3: Modeling games II HW #1 due Chapter 2

Sep 10 Lecture #4: Modeling games III

Sep 15 Lecture #5: Solution concept: Dominance I HW #2 due Chapter 3

Sep 17 Lecture #6: Solution concept: Dominance II

Sep 22 Lecture #7: Solution concept: Nash Equilibrium I HW #3 due Chapter 4

Sep 24 Lecture #8: Solution concept: Nash Equilibrium II

Sep 29 Lecture #9: n-player games HW #4 due Chapter 5

Oct 1 Lecture #10: Continuous action games 6.1, 6.2 only

Oct 6 Lecture #10: Solution concept: Mixed N. E. I HW #5 due Chapters 7

Oct 8 Lecture #11: Solution concept: Mixed N. E. II

Oct 13 Lecture #12: Solution concept: Mixed N. E. III HW #6 due

Oct 15 Review

Oct 20 NO CLASS (Monday classes meet on Tuesday)

Oct 22 Midterm exam

Oct 27 Lecture #13: Solution concept: Backward induction Chapter 8

Oct 29 Lecture #14: Solution concept: SPNE

Nov 3 Lecture #15: Imperfect information I HW #7 due Chapter 9

Nov 5 Lecture #16: Imperfect information II

Nov 10 Lecture #17: Solution concept: Bayesian N.E. I HW #8 due Chapter 10

Nov 12 Lecture #18: Solution concept: Bayesian N.E. II

Nov 17 Lecture #19: Solution concept: SPBNE I HW #9 due Chapter 11

Nov 19 Lecture #20: Solution concept: SPBNE II

Nov 24 Lecture #21: Practical Applications of Game Theory HW #10 due

Dec 1 Lecture #22: Repeated Games Chapter 13

Dec 3 Lecture #23: Infinite Games

Dec 8 Lecture #24: Cooperation and Punishment HW #11 due Chapter 14

Dec 10 Review

Dec 14 Final Exam