Poslední úprava: doc. PhDr. Martin Gregor, Ph.D. (15.02.2023)
Classes
We will be meeting on Wednesdays, 11-14, in Room 206.
Content
1. The Single-Person Decision Problem
- Actions, Outcomes, and Preferences
- Evaluating Random Outcomes
- Rational Decision Making with Uncertainty
- Rationality Violations
- Rule-Rationality as a Synthesis of Mainstream and Behavioral Economics
Aumann, R. J. (2019)
Tadelis (2013) Chapters 1-2
- Applications: Let’s make a deal, Money pumping, Allais paradox, Ambiguity aversion
Blavatskyy et al. (2022)
2. Normal-Form Games with Pure Strategies
- Dominance in Pure Strategies
- Iterated Elimination of Strictly Dominated Pure Strategies
- Best Responses
- Nash Equilibrium in Pure Strategies
- Level-k Players
- Weak Dominance
- Coordination games, Risk Dominance
Belleflamme and Peitz (2015) Chapter 3.3
Tadelis (2013) Chapters 3-5
- Applications: The Samaritan’s dilemma, Discrete-bid auctions, Cournot and Bertrand duopoly, Bertrand duopoly with limited production capacities, Firm’s choices of price-setting vs. quantity-setting, AI algorithms and pricing, Budgetary commons, Benefit of smallness, Perfect and imperfect tax competition, Texas electricity market, Approval voting, Covid-19 shelter-in-place orders
Asker, Fershtman, and Pakes (2021)
Dave et al. (2020)
Hindriks and Myles (2013) Chapter 20.2
Hortaçsu et al. (2019)
3. Normal-Form Games with Mixed Strategies
- Mixed Strategies
- Strategies, Beliefs, and Expected Payoffs
- Mixed-Strategy Nash Equilibrium
- Nash’s Existence Theorem
- Contest Theory: Tullock Lottery, All-Pay Auction
- Continuous Lotto Games
Konrad (2009) Chapters 1-2
Tadelis (2013) Chapter 6
- Applications: American and British litigation, Course evaluation schemes at Charles University, Warren Buffett's ‘Billionaire's Buyout Plan’, Public procurements, Campaign finance cap, Venture capital contracting, Labor unions vs. trade unions, Grading competition
Gregor (2021)
4. Extensive-Form Games
- Normal-Form Representation of Extensive-Form Games
- Mixed versus Behavioral Strategies
- Sequential Rationality
- Backward Induction
- Subgame-Perfect Nash Equilibrium
- The One-Stage Deviation Principle
Belleflamme and Peitz (2015) Chapter 16.3.2
Tadelis (2013) Chapters 7-9
- Applications: Price leadership in British supermarkets, Bundling and entry deterrence, Agenda-setting power of committee chairman, Monetary policy-making, Coordinated and sequential budgeting
Kim, Lan and Dobson (2021)
Riboni and Ruge-Murcia (2010)
5. Multistage and Repeated Games
- Multistage Games
- Infinitely Repeated Games
- The Folk Theorem
Tadelis (2013) Chapter 10
- Applications: Prisoner-Revenge Game
6. Bargaining
- Chicken game
- Waiting games
- Legislative bargaining
- Bilateral bargaining
- The Infinite-Horizon Bargaining
Tadelis (2013) Chapter 11
- Applications: Monetary vs. fiscal policy-makers, Fiscal stabilizations
Poslední úprava: doc. PhDr. Martin Gregor, Ph.D. (15.02.2023)
Classes
We will be meeting on Wednesdays, 11-14, in Room 206.
Content
1. The Single-Person Decision Problem
- Actions, Outcomes, and Preferences
- Evaluating Random Outcomes
- Rational Decision Making with Uncertainty
- Rationality Violations
- Rule-Rationality as a Synthesis of Mainstream and Behavioral Economics
Aumann, R. J. (2019)
Tadelis (2013) Chapters 1-2
- Applications: Let’s make a deal, Money pumping, Allais paradox, Ambiguity aversion
Blavatskyy et al. (2022)
2. Normal-Form Games with Pure Strategies
- Dominance in Pure Strategies
- Iterated Elimination of Strictly Dominated Pure Strategies
- Best Responses
- Nash Equilibrium in Pure Strategies
- Level-k Players
- Weak Dominance
- Coordination games, Risk Dominance
Belleflamme and Peitz (2015) Chapter 3.3
Tadelis (2013) Chapters 3-5
- Applications: The Samaritan’s dilemma, Discrete-bid auctions, Cournot and Bertrand duopoly, Bertrand duopoly with limited production capacities, Firm’s choices of price-setting vs. quantity-setting, AI algorithms and pricing, Budgetary commons, Benefit of smallness, Perfect and imperfect tax competition, Texas electricity market, Approval voting, Covid-19 shelter-in-place orders
Asker, Fershtman, and Pakes (2021)
Dave et al. (2020)
Hindriks and Myles (2013) Chapter 20.2
Hortaçsu et al. (2019)
3. Normal-Form Games with Mixed Strategies
- Mixed Strategies
- Strategies, Beliefs, and Expected Payoffs
- Mixed-Strategy Nash Equilibrium
- Nash’s Existence Theorem
- Contest Theory: Tullock Lottery, All-Pay Auction
- Continuous Lotto Games
Konrad (2009) Chapters 1-2
Tadelis (2013) Chapter 6
- Applications: American and British litigation, Course evaluation schemes at Charles University, Warren Buffett's ‘Billionaire's Buyout Plan’, Public procurements, Campaign finance cap, Venture capital contracting, Labor unions vs. trade unions, Grading competition
Gregor (2021)
4. Extensive-Form Games
- Normal-Form Representation of Extensive-Form Games
- Mixed versus Behavioral Strategies
- Sequential Rationality
- Backward Induction
- Subgame-Perfect Nash Equilibrium
- The One-Stage Deviation Principle
Belleflamme and Peitz (2015) Chapter 16.3.2
Tadelis (2013) Chapters 7-9
- Applications: Price leadership in British supermarkets, Bundling and entry deterrence, Agenda-setting power of committee chairman, Monetary policy-making, Coordinated and sequential budgeting
Kim, Lan and Dobson (2021)
Riboni and Ruge-Murcia (2010)
5. Multistage and Repeated Games
- Multistage Games
- Infinitely Repeated Games
- The Folk Theorem
Tadelis (2013) Chapter 10
- Applications: Prisoner-Revenge Game
6. Bargaining
- Chicken game
- Waiting games
- Legislative bargaining
- Bilateral bargaining
- The Infinite-Horizon Bargaining
Tadelis (2013) Chapter 11
- Applications: Monetary vs. fiscal policy-makers, Fiscal stabilizations
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