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Strategic Market Interaction

Description
The course is an introduction to the fundamentals of game theory and mechanism design to enable a rigorous analysis of strategic market interaction. It covers static and dynamic games under complete and incomplete information. The course emphasizes theoretical foundations of game theory and develops knowledge on the standard equilibrium notions in different environments. Motivations are drawn from topics in industrial organization, auction and market design, as well as information engineering and networked systems. Also social and economic contexts will be covered in order to put the engineering and industrial organization applications into a broader perspective.

Prerequisites
The contents of the compulsory microeconomics courses in the bachelor curriculum, Bachelor’s degree

Module Compatibility
Master Wirtschaftsingenieurwesen

Grading
There will be a final exam (90 minutes) at the end of the semester. The exam covers all materials from the lectures and exercise classes.

Credit points
Master students who pass the exam will receive 5 ECTS points.

Language
The lectures as well as the exercise classes will be held in English.

Main Literature

  1. Vega-Redondo, F. (2003), Economics and the Theory of Games, Cambridge, Cambridge University Press.
  2. Fudenberg, D. and Tirole, J. (2007), Game Theory, Cambridge, MIT Press.
  3. Krishna, V. (2002), Auction Theory, Academic Press.

Contact person

Please contact Mirjam Ambrosius in case you have any questions or if you would like to participate in this course.

Course Outline (preliminary)

  1. Introduction
  2. Strategic Form Games
  3. Dynamic Games with Complete Information
  4. Static Games with Incomplete Information
  5. Dynamic Games with Incomplete Information
  6. Auction Theory
  7. Mechanism Design

Only offered in winter term!