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Docente
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CAMPIONI ELOISA
(programma)
Game Theory is the mathematical modeling of strategic interactions among rational agents. Some examples of such interactions are competition among firms, conflicts among nations, trading behavior in stock markets. The course will provide the basics: representing games and strategies, normal and extensive forms, complete and incomplete information settings, some notions of repeated games. It will use a variety of examples to illustrate the main concepts and some classical economic applications. Detailed programme for Game Theory • Static games of complete informations: Dominant strategies and Nash equilibrium. Applications: Cournot Oligopoly, Bertrand duopoly. Mixed strategy equilibria. Existence of a Nash equilibrium. • Static games of incomplete information: Bayes-Nash equilibrium. Applications: Cournot competition with incomplete information., Auction, Bank runs. • Dynamic game with complete information: extensive form, backward induction. Subgame Perfect Nash Equilibrium. Applications: Stackelberg duopoly, entry games, Rubinstein bargaining game. Basic notions of Repeated games. • Dynamic games with incomplete information. Introduction to Perfect Bayesian equilibrium. Signaling games.
 Gibbons R. “A Primer in Game Theory”, 1992, Prentice Hall Additional readings suggested by the lecturer
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