ECON 418 | Course Introduction and Application Information - Department of Mathematics

Course Name

Game Theory

Code	Semester	Theory (hour/week)	Application/Lab (hour/week)	Local Credits	ECTS
ECON 418	Fall/Spring	3	0	3	6

Prerequisites

	ECON 100 To succeed (To get a grade of at least DD)
or	ECON 101 To succeed (To get a grade of at least DD)
or	ECON 102 To succeed (To get a grade of at least DD)
or	GEEC 203 To succeed (To get a grade of at least DD)

Course Language

English

Course Type

Elective

Course Level

First Cycle

Mode of Delivery

-

Teaching Methods and Techniques of the Course

-

National Occupation Classification

-

Course Coordinator

-

Course Lecturer(s)

Prof. Dr. Alper DUMAN

Assistant(s)

-

Course Objectives

The course aims to empower the student with the ability to analyze a problem regarding the Game Theory by making use of scientific economic tools, and offer policy proposals.Students are also expected to be able to scientifically criticize an article appearing in a newspaper or any other news media after taking this course or during the semester, not necessarily for exam purposes. That will prepare the student for the evercompetitive job market by helping them gain critical thinking in the scientific methodology.

Learning Outcomes

The students who succeeded in this course;

Will be able to explain the main equilibrium concepts of game theory like Nash equilibrium, iterated elimination of strictly dominated strategies, subgame perfect equilbirium, backwards induction.
Will be able to infer possible outcomes of static and dynamic games.
Will be able to model the strategic interaction of firms in oligopolistic market structures in the scope of game theory.
Will be able to estimate the results of strategic interaction of firms in oligopolistic market structures in the scope of game theory.
Will be able to explain the auction theory and its implications.

Course Description

The course covers the analysis of strategic behaviors in everyday life. Most of the times, people and firms are in competition and have to behave strategically to maintain their best interests. Behaving strategically means that an agent must accept other’s existence and consider their decisions as well when deciding. Our best interest may harm others whom we are living with. The merit is to find a (the) best solution maximizing the utility under given conditions.

Course Category	Core Courses
	Major Area Courses
	Supportive Courses	X
	Media and Management Skills Courses
	Transferable Skill Courses

Week	Subjects	Related Preparation	Learning Outcome
1	Introduction to Game Theory
2	Static games with complete information	Game Theory for Applied Economists Chp:1
3	Static games with complete information	Game Theory for Applied Economists Chp:1
4	Static games with complete information	Game Theory for Applied Economists Chp:1
5	Static games with complete information	Game Theory for Applied Economists Chp:1
6	Midterm 1
7	Dynamic games with complete Information	Game Theory for Applied Economists Chp:2
8	Dynamic games with complete Information	Game Theory for Applied Economists Chp:2
9	Static games with incomplete information	Game Theory for Applied Economists Chp:3
10	Static games with incomplete information	Game Theory for Applied Economists Chp:3
11	Static games with incomplete information	Game Theory for Applied Economists Chp:3
12	Midterm 2
13	Dynamic games with incomplete information	Game Theory for Applied Economists Chp:4
14	Dynamic games with incomplete information	Game Theory for Applied Economists Chp:4
15	Dynamic games with incomplete information	Game Theory for Applied Economists Chp:4
16	Review of the Semester

Course Notes/Textbooks

Game Theory for Applied Economists, Robert Gibbons, Princeton University Press.

Suggested Readings/Materials

H. Scott Bierman and Luis Fernandez (1998) Game Theory with Economic Applications, Addison Wesley Press: Second Addition, USAAvinash K. Dixit and Barry J. Nalebuff (2002), Stratejik Düşünme, Sabancı University Press: Istanbul (Turkish Translation by Nermin Arık),John S. McGee (1988), Industrial Organization, Prentice Hall Press, USARobert S. Pindyck and Daniel Rubinfeld (1992), Microeconomics, McMillan: Second Addition, New York, USA (Game Theory Chapters Only)Orhan Çoban (2003) Endüstri İktisadı ve Oyun Teorisi: Rekabetin Analitik Bir İncelemesi, Ekin Press, Istanbul, Turkey

Semester Activities	Number	Weigthing
Participation
Laboratory / Application
Field Work
Quizzes / Studio Critiques	5	20
Portfolio
Homework / Assignments
Presentation / Jury
Project
Seminar / Workshop
Oral Exams
Midterm	2	50
Final Exam	1	30
Total

Weighting of Semester Activities on the Final Grade	7	70
Weighting of End-of-Semester Activities on the Final Grade	1	30
Total

Semester Activities	Number	Duration (Hours)	Workload
Theoretical Course Hours (Including exam week: 16 x total hours)	16	3	48
Laboratory / Application Hours (Including exam week: '.16.' x total hours)	16		0
Study Hours Out of Class	16	2	32
Field Work			0
Quizzes / Studio Critiques	5	6	30
Portfolio			0
Homework / Assignments			0
Presentation / Jury			0
Project			0
Seminar / Workshop			0
Oral Exam			0
Midterms	2	25	50
Final Exam	1	20	20
		Total	180

#	PC Sub	Program Competencies/Outcomes	* Contribution Level
#	PC Sub	Program Competencies/Outcomes	1	2	3	4	5
1	To be able to have a grasp of basic mathematics, applied mathematics or theories and applications of statistics.		-	-	-	-	-
2	To be able to use advanced theoretical and applied knowledge, interpret and evaluate data, define and analyze problems, develop solutions based on research and proofs by using acquired advanced knowledge and skills within the fields of mathematics or statistics.		-	-	X	-	-
3	To be able to apply mathematics or statistics in real life phenomena with interdisciplinary approach and discover their potentials.		-	-	-	X	-
4	To be able to evaluate the knowledge and skills acquired at an advanced level in the field with a critical approach and develop positive attitude towards lifelong learning.		-	-	-	-	X
5	To be able to share the ideas and solution proposals to problems on issues in the field with professionals, non-professionals.		-	-	-	-	X
6	To be able to take responsibility both as a team member or individual in order to solve unexpected complex problems faced within the implementations in the field, planning and managing activities towards the development of subordinates in the framework of a project.		-	-	-	-	-
7	To be able to use informatics and communication technologies with at least a minimum level of European Computer Driving License Advanced Level software knowledge.		-	-	-	-	-
8	To be able to act in accordance with social, scientific, cultural and ethical values on the stages of gathering, implementation and release of the results of data related to the field.		-	-	-	-	-
9	To be able to possess sufficient consciousness about the issues of universality of social rights, social justice, quality, cultural values and also environmental protection, worker's health and security.		-	-	-	-	-
10	To be able to connect concrete events and transfer solutions, collect data, analyze and interpret results using scientific methods and having a way of abstract thinking.		-	-	-	-	-
11	To be able to collect data in the areas of Mathematics or Statistics and communicate with colleagues in a foreign language.		-	-	-	-	-
12	To be able to speak a second foreign language at a medium level of fluency efficiently.		-	-	X	-	-
13	To be able to relate the knowledge accumulated throughout the human history to their field of expertise.		-	-	-	-	-