Syllabus for Economics 414
Daniel R. Vincent: Fall, 2023
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Tuesday and Thursday, 2:00 pm to 3:15
pm, in Tydings 0102.
Required
Texts
The class text is:
Joseph Harrington, Games,
Strategies and Decision Making,
2nd Edition, Worth Publishers, 2015,
ISBN-10:1-4292-3996-4 (JH)
Also recommended but not required is
Robert Gibbons, Game Theory
for Applied Economists, 1992 (or any later edition), Princeton
University Press. ISBN-10: 0521551846
(RG)
Avinash Dixit
and Barry Nalebuff, The Art of Strategy, (2008 or any later
edition), W.W. Norton. ISBN- 978-0-393-06243-4
(DN)
Course
Description
This
course
studies the competitive and cooperative behavior that results when
several parties with conflicting interests must work together. We will
learn how to use game theory to study situations of potential conflict
-- situations where the eventual outcome depends not just on your
decision and chance, but the actions of others as well. Applications are
drawn from economics, business,and political science. Typically there
will be no clear cut "answers" to these problems (unlike most
single-person decisions). Our analysis can only suggest what issues are
important and provide guidelines for appropriate behavior in certain
situations.
On
the
one hand, competitive analysis is subtle, ambiguous, and often
counter-intuitive; but on the other hand, it is fascinating,
challenging, and a good deal of fun. I hope to broaden your exposure to
and improve your understanding of competitive situations.
Prerequisites: A minimum grade of C- in either ECON306 or ECON326 and a minimum
grade of C- in either ECON230, BMGT230, or ECON321. Restriction: Must
be in Economics Bachelor of Arts or Bachelor of Science program.
Credit only granted for: CMSC474, ECON406, ECON414, GVPT399A or
GVPT390.
PLEASE NOTE: Problem Set 1 is due on ELMS, Friday, September 8, 11:59pm.
That will give you a sense of if this course is appropriate for you.
Course
Logistics
Problem sets for this course can be found on ELMS as
well as at http://econweb.umd.edu/~vincent/econ414/econ414PS.html.
This site also has some past exams and tests. Please let me know
if you find any bugs in the page and please send me suggestions on ways
to make it more useful. Note that while there are links to the lecture
slides in this syllabus, they are for the most part to older versions.
Updated versions will be on ELMS.
Assignments include problem sets, two mid-term and a final exam.
Lectures will be given in Tydings 0102 on Tues-Thurs at 2:00pm.
The first lecture is Tuesday, August 29.
My office hours are Mondays, 2:00 – 3:00 in Tydings
4130B. However, I generally respond quickly to email questions as well.
Please include ECON414 in the subject line.
The TA for this course is Sarah
Webb. Office hours: Wednesdays. 9-10am, Tydings 4110.
Zoom
and Attendance
While attendance at all lectures is not mandatory, I
strongly encourage students to attend lectures in person. Because of the
recent upsurge in Covid, I will try to stream and record lectures on
ZOOM for the first two weeks, however, I give no assurances that this
will continue through the remainder of the semester.
In order to encourage attendance, I will take a roll
call three times at random over the semester. Any student who is present
(or who has registered a valid excuse beforehand) will receive one bonus
point for each of the times I conduct the roll call, for a maximum of
three possible points to be added to the cumulative course score.
Course
Outline
PART I: Introduction
1. What is Game Theory?
· Strategic Thinking
· Rationality
· Common Knowledge
JH Chapter 1.
JH Chapters 4, 5
· Market games – Cournot and Bertrand
Games.
JH Chapters 4,5,6
(pp. 194-197, Appendix)
· Graphical.
· Mathematical JH
Chapter 7.
· Definition.
·
Examples.
JH Chapter 9
http://econweb.umd.edu/~vincent/econ414/Lecture414(11)SGP.pdf
Part VII: Games of Incomplete Information
(Privately informed players)
1. Bayesian Games.
2.
Bayesian Nash Equilibrium
JH Chapter 10.
http://econweb.umd.edu/~vincent/econ414/Lecture414(12)BNE.pdf
3.
Signaling Games
JH Chapter 11.2
http://econweb.umd.edu/~vincent/econ414/Lecture414(12a)BNE.pdf
Part VIII:
Auctions
1. The
symmetric Independent Private Values model
2. Two
types of auctions
3.
Applications
JH Chapters 3.2.3, 10.4,10.7.
http://econweb.umd.edu/~vincent/econ414/Lecture414(13)AUCTIONS.pdf
http://econweb.umd.edu/~vincent/econ414/Lecture414(13a)RWAuctions.pdf
Part IX: Repeated Games
1.
Finitely repeated games and subgame perfection
JH,
Chapter 13
http://econweb.umd.edu/~vincent/econ414/Lecture414(14)REPEAT.pdf
2.
Infinitely repeated games.
JH,
Chapter 13
http://econweb.umd.edu/~vincent/econ414/Lecture414(15)INFINITE.pdf
Part X:
Matching Algorithms
1. A
Brief Introduction to Matching Theory
http://econweb.umd.edu/~vincent/econ414/Lecture414(16)TCKidney.pdf
Grading:
Your grade will be determined as follows:
4 Problem Sets (Best 3 scores)
21points
Midterm Score (Two Tests Equally Weighted)
34 points
Final
exam
45 points
---------------------------------------------------------------------------------------------------------------
Total
100 points
The University policy on grading requires me to use the grading
system I announce at the beginning of the semester in all cases.
I cannot make any exceptions to that rule. I assign Letter
Grades using +/-.
Assessments
You are allowed to work with other students in completing the problem
sets, however, you must submit your own individual answer file.
The schedule for the course assessments is as
follows:
Problem Set 1 is due September 08
online.
Problem Set 2 is due September
26 online.
Problem Set 3 is due
October 17 online.
Problem Set 4 is due
TBA online.
Due dates for the final two Problem Sets will be
confirmed in class.
Midterm
1 Thurs.,
Sept..
28,
2:00pm
Midterm
2
Thurs.,
Nov. 02,
2:00pm
Final
Exam
TBA
NOTE: Students who have a University-recognized conflict should let me
know right away. It is your responsibility to ensure you are available
for the midterms and final exam.
Campus Policies
The university’s Code of Academic Integrity
https://policies.umd.edu/academic-affairs/university-of-maryland-code-of-academic-integrity
states that academic dishonesty includes any of the following acts:
- Cheating: attempting to gain an unfair advantage and/or
intentionally using or attempting to use unauthorized materials,
information, or study aids in any academic course or exercise.
- Fabrication: falsification or invention of any information or
citation in any academic course or exercise.
- Facilitating Academic Dishonesty: intentionally or knowingly
helping or attempting to help another to violate any provision of this
Code.
- Plagiarism: intentionally or knowingly representing the words
or ideas of another as one’s own in any academic course or exercise.
The university’s Non-Discrimination Policy https://president.umd.edu/sites/president.umd.edu/files/documents/policies/VI-1.00B_2.pdf
prohibits discrimination on grounds of race, color, sex, gender identity
or expression, sexual orientation, marital status, age, national origin,
political affiliation, physical or mental disability, religion,
protected veteran status,genetic information, personal appearance, or
any other legally protected class. This applies to discrimination,
harassment or retaliation “that adversely impacts the education...of a
member of the University community regardless of where the conduct
occurred.”
As you use a group chat for this course, keep in mind
that it is unacceptable to have
another person do your own work.You must write up your own answers
in your own words, unless the assignment is a designated group
activity.If others post information on the group chat, you should verify
that it is correct and complete so that it helps your understanding
rather than hinders it.You should never copy the work of another person
or other source without quoting it, citing it, and providing a full
reference, because otherwise that is plagiarism.
It
is
our shared responsibility to know and abide by the University of
Maryland’s policies that relate to all courses. Please visit https://www.ugst.umd.edu/courserelatedpolicies.html
for the Office of Undergraduate Studies’ full list of campus-wide policies and follow up with me if you have questions.
Course Experience Survey*
Your opinion about the course is important and will be heard. I look
forward to receiving your feedback on the course, both during and at
the end of the semester. Please submit a Course Experience Survey
(www.courseexp.umd.edu) in order to help faculty and administrators
improve teaching and learning at Maryland. All information submitted
is confidential.
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