ECON 2511 - Thinking Strategically II

North Terrace Campus - Semester 1 - 2014

This course provides an introduction to decision making in strategic situations using the language and tools of non-cooperative and cooperative game theory. The emphasis is very much on basic understanding rather than formal statements of results. Examples and applications are drawn from economics, business strategy, political science, philosophy and literature, including models of commitment, reputation, bargaining, power and voting, problems in fair division, and matching.

  • General Course Information
    Course Details
    Course Code ECON 2511
    Course Thinking Strategically II
    Coordinating Unit School of Economics
    Term Semester 1
    Level Undergraduate
    Location/s North Terrace Campus
    Units 3
    Contact Up to 3 hours per week
    Incompatible ECON 3503 & ECON 7062
    Assumed Knowledge ECON 1005 or equivalent
    Course Description This course provides an introduction to decision making in strategic situations using the language and tools of non-cooperative and cooperative game theory. The emphasis is very much on basic understanding rather than formal statements of results. Examples and applications are drawn from economics, business strategy, political science, philosophy and literature, including models of commitment, reputation, bargaining, power and voting, problems in fair division, and matching.
    Course Staff

    Course Coordinator: Dr Dmitriy Kvasov

    Course Timetable

    The full timetable of all activities for this course can be accessed from Course Planner.

  • Learning Outcomes
    Course Learning Outcomes
    The purpose of this course is to provide students with an introduction to central themes and results in both non-cooperative and cooperative game theory.

    On successful completion of this course students will be able to:
    1 Possess a solid grasp of the mathematics of Nash equilibrium and know how to apply it to specific problems
    2 Develop an understanding of the Shapley value and become familiar with its uses
    3 Develop an understanding of the Gale–Shapley algorithm and become familiar with its uses
    4 Acquire a basic toolkit from game theory; develop skills in the translation of economic problems into game-theoretic notation; be able to select an appropriate solution concept; and be able to compute equilibrium strategies
    University Graduate Attributes

    This course will provide students with an opportunity to develop the Graduate Attribute(s) specified below:

    University Graduate Attribute Course Learning Outcome(s)
    Knowledge and understanding of the content and techniques of a chosen discipline at advanced levels that are internationally recognised. 1,2,3,4
    The ability to locate, analyse, evaluate and synthesise information from a wide variety of sources in a planned and timely manner. 1,2,3,4
    An ability to apply effective, creative and innovative solutions, both independently and cooperatively, to current and future problems. 1,2,3,4
    Skills of a high order in interpersonal understanding, teamwork and communication. 1,2,3,4
    A commitment to continuous learning and the capacity to maintain intellectual curiosity throughout life. 1,2,3,4
    An awareness of ethical, social and cultural issues within a global context and their importance in the exercise of professional skills and responsibilities. 2
  • Learning Resources
    Required Resources
    Textbooks:

    Game Theory by H. Peters, 2008.
    Electronic version of the books are available free of charge from the library.

    Additional required reading resources will be announced during the semester on MyUni or in class.
    Online Learning

    The course uses MyUni and it is a student’s responsibility to check the website regularly.

    Course material such as lecture notes, assignments, and assignment answer guides will be available on MyUni.

  • Learning & Teaching Activities
    Learning & Teaching Modes
    Learning in this course is through lectures, tutorial, and personal study.
    The lectures will provide you with the necessary understanding of the material to be able to solve the exercises you will be given during tutorial, assignments or exams.

    The tutorials will be organised as follows:
    • Your tutor will present the solutions for one of the exercises you were asked to prepare to illustrate what is expected from you in solving these kinds of problems.
    • Students will then be asked to come to the board and present their work and answers to some of the tutorial exercises. Your tutor will provide assistance if needed and questions from other students are strongly encouraged.
    Diverse learning styles will be supported by the provision of course materials in a variety of formats.

    The practical learning approach will be incorporated through the tutorials as described above. The online discussion board will also provide a dynamic forum for students to share and develop their ideas.
    Workload

    The information below is provided as a guide to assist students in engaging appropriately with the course requirements.

    Students in the course are expected to attend all two-hour lectures and/or tutorial throughout the semester. Students are also expected to commit approximately 4 to 6 hours to private study, that is, study outside of your regular classes.
    Learning Activities Summary
    Weeks 1-7:   Non-Cooperative Game Theory        
    • Games in extensive form.
    • Backward induction.
    • Strategies and Information.
    • Games in normal form.
    • Nash equilibrium.
    • Dominance.
    • Repeated Games.
    • Mechanism Design.
    Week 8-12:   Cooperative Game Theory
    • Assignment and matching problems.
    • Bankruptcy problems.
    • Core.
    • Shapley Value.
  • Assessment

    The University's policy on Assessment for Coursework Programs is based on the following four principles:

    1. Assessment must encourage and reinforce learning.
    2. Assessment must enable robust and fair judgements about student performance.
    3. Assessment practices must be fair and equitable to students and give them the opportunity to demonstrate what they have learned.
    4. Assessment must maintain academic standards.

    Assessment Summary
    Mid-semester Test 30%
    Assignment 1 15%
    Assignment 2 15%
    Final Exam 50%
    Assessment Detail
    1. There will be two assignments and one mid-semester exam during the semester. The goal of the assignments is to facilitate preparation for the exams. The assignments and mid semester exam are compulsory and NOT redeemable, unless a student has a medical certificate which has to be presented to the lecturer before any redemption can be arranged.
    2. The final exam will cover the entire course. All material from the lectures, the textbook, or the tutorials is examinable.
    3. Legible hand-writing and the quality of English expression are considered to be integral parts of the assessment process. Marks may be deducted in the final examination because of poor hand-writing.
    4. Assessment marks prior to the final exam may be displayed on the course website.  Students are encouraged to check their marks and notify the lecturer-in-charge of any discrepancies.
    Submission

    No information currently available.

    Course Grading

    Grades for your performance in this course will be awarded in accordance with the following scheme:

    M10 (Coursework Mark Scheme)
    Grade Mark Description
    FNS   Fail No Submission
    F 1-49 Fail
    P 50-64 Pass
    C 65-74 Credit
    D 75-84 Distinction
    HD 85-100 High Distinction
    CN   Continuing
    NFE   No Formal Examination
    RP   Result Pending

    Further details of the grades/results can be obtained from Examinations.

    Grade Descriptors are available which provide a general guide to the standard of work that is expected at each grade level. More information at Assessment for Coursework Programs.

    Final results for this course will be made available through Access Adelaide.

  • Student Feedback

    The University places a high priority on approaches to learning and teaching that enhance the student experience. Feedback is sought from students in a variety of ways including on-going engagement with staff, the use of online discussion boards and the use of Student Experience of Learning and Teaching (SELT) surveys as well as GOS surveys and Program reviews.

    SELTs are an important source of information to inform individual teaching practice, decisions about teaching duties, and course and program curriculum design. They enable the University to assess how effectively its learning environments and teaching practices facilitate student engagement and learning outcomes. Under the current SELT Policy (http://www.adelaide.edu.au/policies/101/) course SELTs are mandated and must be conducted at the conclusion of each term/semester/trimester for every course offering. Feedback on issues raised through course SELT surveys is made available to enrolled students through various resources (e.g. MyUni). In addition aggregated course SELT data is available.

  • Student Support
  • Policies & Guidelines
  • Fraud Awareness

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