Game Theory and Economics
|Previously Offered||BTH, BRI, HKU, SCZ|
From the CTY Summer Catalog:
IBM founder Thomas J. Watson once said, “Business is a game—the greatest game in the world if you know how to play it.” In today’s global marketplace, understanding game theory—the branch of mathematics that focuses on the application of strategic reasoning to competitive behavior—is key to success in business and economics. This course uses game theory as a framework from which to analyze a variety of real-world economic situations. You’ll analyze simple games to learn how they can be used to model actual situations encountered by entrepreneurs and economists. For example, you’ll apply the concept of Nash equilibria to find the perfect price for a pizza. Through class discussions, activities, research, and mathematical analysis, you and your classmates will acquire an understanding of more complex games and how apply these methods to a variety of economic situations such as auctions and bidding behavior, fair division and profit sharing, monopolies and oligopolies, and bankruptcy.