This course in designed as a brief introduction to individual decision making. Its main objective is to provide the students with basic game theory techniques that can be useful to face and understand, using logical reasoning, strategic situations that appear in all the areas of everyday life.
We will analyse our believe system and try to answer questions like: Where do our preferences come from? Are they stable? What could be the outcome of this situation? What can I do to get the best possible outcome for me given what by opponent is doing? This course will teach you how to transfer a problem into a game and try to predict its outcome.
Students in this course are expected to actively participate and show their opinion about the topics discussed. Each student will be asked at the end of the course to present a real-life problem, covert it into a game, predict what will be the outcome and compare it with the real life one. The knowledge obtained during those 3 weeks will improve your decision making.
Expected Utility Theory
Value of information
|Theory classes, problem solving and discussions|
2. Game Theory
Subgame Perfect Nash Equilibrium
Midterm Decision Theory,
Theory classes, problem solving and discussions
3. New approaches to the same problems
Midterm Game Theory,
Theory classes, problem solving and final presentations
From Monday to Friday.
From 9 a.m. to 12:30 p.m.
Outputs and exercises that the student is going to do to have the qualification. Including deadlines.
Students' understanding of the material of the course will be evaluated using:
4 Homeworks (the grade will not be taken into accounts it is a self-evaluation)
30% of the Final Grade is Midterm covering the material in the first week of the course (Decision Theory), The Monday of the second course week.
30% of the Final Grade is Midterm covering the material in the second week of the course (Game Theory), The Monday of the third course week.
40% of the Final Grade is a Presentation the student will be asked to analyze a real-world problem using the techniques studied in class. Thursday and Friday of the 3rd week of the course.
Basic and advanced bibliography including books, articles and internet links.
The material needed for the course will be posted in Campus Virtual. However, you can read the following books to obtain additional information:
- Varian, H. R. (2010) Intermediate Microeconomics. A Modern Approach, W.W. Norton & Company
- Dixit, A. K. and Nalebuff, B. J. (1991) Thinking Strategically: The Competitive Edge in Business, Politics and Everyday Life, W.W. Norton & Company
- Dixit, A. K. and Nalebuff, B. J. (2008) The Art of Strategy: A Game Theorist's Guide to Success in Business and Life, W.W. Norton & Company
Ivanna Ferdinandova is Bulgarian. She obtained her PhD in UAB in 2003 in the field of Behavioural Economics, Game Theory and Computational Economics. Since then, she has been working in UPF, UAB and the Study Abroad program of UAB.