Decision making and strategy in Economics
Penn State ⋅ ECON402 ⋅ Summer 2012The final exam will be on Monday 06/25 from 4:40 to 6:30 in 110 Business. I have posted the answers to the practice exam. I will hold office hours on Monday from 11:00 to 2:00. I will not answer any questions after 2:00.
download syllabus — pdf
Course Outline
Module 1
- Introduction to game theory — slides
- Extensive form games — slides
- Strategic form games — slides
- Rationalizability
- Nash Equilibrium in pure strategies — slides
Module 2
- Nash Equilibrium in mixed strategies — slides
- Backward induction and subgame perfection — slides
- Moral hazard and contracts — slides
Module 3
- Repeated interactions and relational contracts — slides
- Incomplete information and the principal-agent problem — slides
- Private information and selling mechanisms — slides
- Perfect Bayesian equilibrium and signaling games — slides
- Introduction to rational choice theory — slides
Weekly games
- P-beauty contest — rules and results