Denmark, Aarhus

Applied Game Theory

when 2 July 2014 - 15 July 2014
duration 2 weeks
credits 5 ECTS

Game theory is a popular subject and a powerful tool for analyzing strategic interactions between players or decision making units. Players are decision making units, e.g. individuals, firms, workers, managers, countries etc. Game theory describes strategic decision making processes. It analyzes situations in which players interact, and suggests strategies and solutions that are based on profit or utility maximizing concepts. Game theory is widely applied in management and social sciences, i.e., economics, political science, marketing, psychology etc.

This course teaches Applied Game Theory and will concentrate on introducing and applying the basic concepts to economics and business applications. The course will introduce the basic concepts of game theory and introduce several methods to solve interactive decision problems. The concepts will be applied to economics and business relevant applications that relate to Firm Behavior in Markets and different types of Market Structures. Therefore, the game theoretic decision making concepts will be applied to topics such as: Entry, R&D patent races, Mergers, Cartel, Collusion, Advertisement, Auctions, Dynamic games, New Product Introduction.

Course leader

Ralph Siebert, Purdue University

Target group

Master's students with a background within Finance, Business and Management.

Course aim

On completion of the course, the students will be able to: Define a game theoretic decision making problem, Introduce alternative concepts and methods to solving complex problems, Provide a basis for a good understanding of the logical mechanics, Apply different mechanisms and solution concepts to real world applications

Fee info

EUR 0: Students on a bilateral exchange programme do not have to pay. Freemovers are obliged to pay participation fees while tuition fees only apply to freemovers from countries outside the EU/EEA/Switzerland.