Advanced Game Theory


Game Theory analyses the decision-making behavior of rational agents in situations in which several actors are involved. Unlike Decision Theory, Game Theory describes a situation in which the success of the individuals is not only depending on their own behavior, but on the actions of the other participants as well. The course will deepen and extend the basic knowledge of Game Theory acquired in the Bachelor studies. It shows the applications of basic theoretical concepts (Nash equilibrium, subgame perfect equilibrium) to more complicated economic applications. It introduces further concepts for the analysis of sequential-move games that allows us to eliminate implausible predictions of the game obtained by the basic equilibrium concepts. Such refinements include the weak-perfect Bayesian equilibrium, sequential equilibrium, perfect equilibrium. Finally, the course discusses the analysis of the games with incomplete information both in simultaneous and sequential move games. We discuss different equilibrium concepts and their various refinements in the context of these games.

Bachelor’s degree in economics or a comparable discipline. Basic knowledge of game theory and good mathematical and analytical skills are advantage.


The course contains one lecture a week (2 SWS) and an exercise class (1 SWS). The lecture takes place every Tuesday from 11.30 – 13.00 in room LG 0.144. For the exercise class, students will be divided into two fixed groups, each group attends the exercise class every second week. The exercise class is on Tuesdays from 8:00 – 9:30 in LG 3.155 or from 13.15 – 14.45 in LG 0.144.



There will be a final exam (90 minutes long) at the end of the semester. The exam covers all materials from the lectures and exercise classes. In addition, students will be asked to complete homework assignments. The course can be passed only if the final exam is passed. The final grade is computed based on the grade of the final exam (80%) and the points obtained on the homeworks (20%).

Credit points

Master students who pass the exam receive 5 ECTS points.


Fudenberg, D. and Tirole, J. (2007), Game Theory, Cambridge, MIT Press.

Further Readings:
Krishna, V. (2002), Auction Theory, Academic Press.
Osborne, M. and A. Rubenstein (1994), A Course in Game Theory, Cambridge, MIT Press.

Contact person:

Simeon Schächtele (simeon.schaechtele@fau.de)

Schedule in WS 2016/17:

Lectures Tuesday, 11:30 am – 13:00 pm, LG 0.144 (44 Plätze)
Exercises every 2nd week on Tuesday 13:15 pm – 14:45 pm, LG 0.144 (44 seats) (except of Tuesday 7.2.2017)
every 2nd week on Tuesday 08:00 am – 09:30 am, LG 3.155 (24 seats)
starting at 25.10.2016

Not offered in the summer term!
Exam re-takers in summer term 2017, please register with Dr. Lawrence Choo (lawrence.cy.choo@fau.de) and meincampus.