Economic Games and Strategies

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General course information and requirements

Semester: Fall 2011
Course: Economics 332, Economic Games and Strategies, section 1 (3 credits)
Prerequisite: Economics 215 (Principles of Microeconomics)
Instructor: Dr. Stonebraker
Office: 401 Thurmond
Office phone: 323-2488
E-mail address: stonebrakerr@winthrop.edu
Office hours:  T 9 - 11 a.m. and 3:30 - 4 p.m., W 1 - 2 p.m., R 9 - 11 a.m. and 3:30 - 5 p.m., F 11 a.m.  - 12 p.m.
                         Other times are available by appointment.

Course objective:

The course will provide an introduction to game theoretic analysis and its application to economics.  Students will develop the ability to use the basic tools of game theory to analyze strategic interactions between firms and individuals.

Text:

Games of Strategy, 3rd edition, by Avinash Dixit, Susan Skeath and David H. Reiley, Jr., W. W. Norton and Company, Inc., 2009. The course closely will follow both the structure and content of the text.

Grading:

 

The grading will be straight letter grades: no plusses or minuses. Four exams will determine most of your grade. The exam with the lowest score will receive less weight than the other exams.  The weight for each assignment is:

• Participation:  (see below)
• Quizzes:                                12%
• Exam with lowest grade:      19%
• Other exams (23% each):     69%

Click here for a spreadsheet that will calculate your course average.

Exams:

Four exams will be given (three midterms and a final). Exam questions will stress analysis rather than factual information and will be based on the material presented in class and the assigned homework problems. You will be expected to write short essay/explanation answers and to solve a variety of numerical games. You only may use non-programmable calculators during exams.  The final exam will include some specified review material and will be given at 8:00 a.m. on Monday, December 12.  The approximate grading scale will be:

        90 - 100%      A
        76 - 89%        B
        64 - 75%        C
        54 - 63%        D
          0 - 53%        F

Make-up policy:

Make-up exams will be given to students with what I judge to be a valid excuse. Needing more time to study is not a valid excuse. If you cannot make an exam I expect to be notified as quickly as possible, preferably before the exam. Students who do not notify me in a timely manner should not expect a make-up exam.

Class participation:

Participation is a critical part of the learning experience. I expect you to be at class on time, pay attention, ask and answer questions as appropriate, and interact with your classmates and instructor in a meaningful way. Each student automatically begins with four participation points added to their final course average.  Students who attend regularly, come to class on time, pay attention and participate regularly will keep these points throughout the semester.  Students who miss classes without good cause, who often come late, who sleep during class, who use their cell phones during class, who read or study non-class material during class, or who fail to interact with the class will lose points.

Quizzes:

There will be five short quizzes (typically one or maybe two problems) at pre-announced times.  The lowest score will be dropped and the remaining four will count as 3% of your grade each.  There will be no make-up quizzes.

Homework:

The key to success in any problem-solving course is to practice solving problems.  I will assign a variety of such problems for your educational enjoyment.  Although I expect you to complete them, they will not be turned in and graded.  The best strategy is to work in small groups on a regular basis to complete the problems and then check the solutions.  To see the solutions to solved problems, click here. Since I do not collect or grade these assignments, some students may choose to ignore them or try them the night before the test. This is an excellent strategy for those hoping to receive a failing grade.

Attendance policy:

You are expected to attend every class on time and are responsible for all class material whether or not you attend.  Following the Winthrop University Attendance Policy, students may not miss as many as 1/4 of the class meetings.  Those withdrawing before the withdrawal deadline will receive a grade of N.  Those missing as many as 1/4 of the classes who do not withdraw by the deadline will receive a grade of F, or U, whichever is appropriate.

Course withdrawal:

Friday, October 21 is last day to withdraw from a full fall semester course.  (Automatic N grade is issued.)  Students may not withdraw from a course after this date without documented extenuating circumstances.

Conduct:

In addition to adherence to Winthrop’s Code of Student Conduct, I expect you to put away all cell phones and other media devices.  That means no texting or checking messages - - even under the desk where you think I cannot see you.  Students caught copying/cheating will be dealt with harshly.

Students with Disabilities:

Winthrop University is dedicated to providing access to education.  If you have a disability and need classroom accommodations, please contact Gena Smith, Coordinator, Office of Disability Services, at 323-3290, as soon as possible.  Once you have your Professor Notification Form, please tell me so that I am aware of your accommodations well before the first assignment.

Course Outline

I.   Introduction to Modern Game Theory

Chapters 1 and 2

II.  Basic Concepts and Techniques

A. Sequential move games

     Chapter 3

B. Simultaneous move games (discrete strategies)

     Chapter 4

Exam #1: Approximately Monday, September 19

C. Simultaneous move games (continuous strategies)

     Chapter 5

D. Combining sequential and simultaneous moves

     Chapter 6

E. Mixed strategy games

     Chapter 7 and pp. 262-272 in chapter 8

Exam #2: Approximately Wednesday, October 19

III.  Classes of Games and Strategies

A. Handling uncertainty

     Chapter 9 (omit section 5C on pp. 339-341)

B. Strategic moves

     Chapter 10

Exam #3: Approximately Wednesday, November 16

C. Repeated games

     Chapter 11 (omit section 5 on pp. 414-424)

D. Collective action games

     Chapter 12 (omit section 5 on pp. 482-486)

E. Evolutionary games

     Chapter 13 (omit section 5 on pp. 513-516, section 6E on pp. 519-521 and sections 7-9 on pp. 521-528)

 Final exam: Monday, December 12 (8 a.m.)