EC 405 - Game Theory and the Economics of Information

(3.00 cr.)

Prerequisite: EC 102 , MA 151 or MA 251 . A grade of C or better required in all prerequisites. Recommended Prerequisite: EC 302 . Game theory is the science of strategic thinking; the study of learning how to outdo an adversary, knowing that the adversary is trying to do the same to you. This course introduces students to this science of strategic thinking or game theory. Strategic thinking is practiced at work or at home in order to survive. Business persons and corporations must use competitive strategies to survive. Politicians devise campaigns to get elected and legislative strategies to implement their visions. The course, therefore, includes applications to the business world, finance, management, law-enforcement, and political economy. It also covers applications of game theory to the economics of information (i.e., making strategic choices when there is limited information about your adversaries). Topics such as moral hazard, adverse selection, and strategic bidding in auctions are covered.