ECON 402: Decision Making and Strategy in Economics.

Andres Aradillas-Lopez


All chapters refer to Joel Watson's   "Strategy: An Introduction to Game Theory" (Third Edition)


A.- Representing Games


Introduction: Chapter 1


Extensive form: Chapter 2

Strategies and the normal form: Chapter 3

Beliefs and mixed strategies: Chapter 4, Chapter 5

B.- Analysis of Static Settings

Best response, rationalizability, applications: Chapter 6, Chapter 7, Chapter 8

Nash equilibrium, applications: Chapter 9, Chapter 10

Other equilibrium topics: Chapter 11, Chapter 12

Contracts, law and enforcement: Chapter 13

C.- Analysis of Dynamic Settings

Backward induction, subgame perfection and applications: Chapter 14, Chapter 15, Chapter 16, Chapter 17

Bargaining: Chapter 18, Chapter 19

Negotiation equilibrium and problems of contracting and investment: Chapter 20, Chapter 21

Repeated games and applications: Chapter 22, Chapter 23

D.- Information

Random events and incomplete information. Applications in contracting: Chapter 24, Chapter 25

Bayesian equilibrium and rationalizability: Chapter 26

Lemons, auctions and information aggregation: Chapter 27

Perfect Bayesian equilibrium: Chapter 28

Job-market signaling and reputation: Chapter 29