Game Theory
Assoc. Prof. Chris Ball
Economics Department
Email: christopher.ball@qu.edu
Office phone: +1 203 582 8745
Office Location: 4th Floor Rocky Top Student Center
QU Course Number: EC 355
Days: T,TH
Time: 3:30 pm - 4:45 pm
Location: TH 328
Download the Syllabus
Outline, Notes and Reading
Most of these are still based on the Watson textbook which I always used (see Book Recommendations)
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Introduction
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Watson Chap 1 "Introduction"
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Watson Chap 5 "General Assumptions and Methodology"
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Ball Chap 0 "Introduction"
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Sequential Move Games Part I
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Reading Ball Chap 1 "Modeling Basics"
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Reading Watson
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Chap 2 "The Extensive Form"
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Chap 3 "Strategies and the Normal Form". Focus on the first part "Terminology and Notation for Strategies" and skip the Normal Form for now.
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Reading Ball
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Handwritten Notes "Actions vs Strategies, Centipede Games, etc."
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Handwritten Notes "Credibility and Entry Games"
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Basic Games with numbers to look at: Eviction, Big John-Little John, Google vs Microsoft, Dr. Strangelove
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Practice with Extensive Games: download here and download the KEY here.
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Practice Problems:
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Handling Variables and a Slightly Different Take on How to Use Games
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Games with variables to look at: Kidnapping and Nuisance suits
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Reading Bargaining Problems and Markets
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Watson, Chap 19 (an interested student should do the class lectures first, then read Chap 18, 19 and 20)
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Practice Problems:
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Sequential Move Games Part II
MIDTERM Exam, Tuesday, October 26
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Sequential Move Pt III: Principal Agent and Randomness
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Extensions of the Principal Agent Model (not covered in class, Fall 2021, but totally doable)
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Practice Problems:
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Sequential Move Games Part III: Randomness 2
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Types and Adding Randomness early in the game
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How Lemons Destroy Markets and What Can Be Done
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Bayesian Asymmetric Information Games
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Practice Problems:
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Simultaneous Move Games Part I
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Strategic Form Games and Pure Nash Equilibria
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Sequential and Simultaneous Games: SPE again
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Practice Problems:
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Simultaneous Move Games Part II
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Mixed Nash
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Practice Problems:
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Dominance Solvable Games: Location Games
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Practice Problems:
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Contracting and Law in Games
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Notes are Watson Chap 13
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Practice Problems:
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Final Paper Due
Final Exam
BOOKS for the Course
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Joel Watson, " Strategy: An Introduction to Game Theory (Third Edition)" I found this to be the best undergrad text to use and used it for years. I highly recommend it.
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Chris Ball (draft) "Modelling With Games: An Introduction to Modelling Human Behavior Using Game Theory"
READINGS
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Dixit Nalebuff, 1991, (p. 14 - 17) "Here I Stand" (commitment devices)
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Dixit Nalebuff, 1992, Chap 6 (p. 142 - 167) "Credible Commitments"
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Bueno de Mesquita, Chap 2 "Collective Goals:" Scanned Chap 2 from Ethan Bueno de Mesquita's Political Economy for Public Policy (amazon link to book)
GAMES
SEQUENTIAL MOVE GAMES
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Eviction Game (strategies vs actions and backward induction)
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"Big John Little John" game done in class (first, second mover)
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Google vs Microsoft, Gintis version
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Dr. Strangelove, Gintis version
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Kidnapping, Gintis version
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Nuisance Suits
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Rasmusses version plus other versions and discussion
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Strategic Voting, Ghintis version
SIMULATENEOUS MOVE
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2019 Watson Location Game (uses elimination of dominated strategies)
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2019 Welfare Game w Calc at End (Rasmussen)
SEQUENTIAL and/or SIMULTANEOUS ("complete games")
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Welfare Game no Calc (extensive then Rasmussen version)
ALL My Hand-Written Class Notes in One Place
PRACTICE PROBLEMS
EXCEL SHEETS to MAKE GAMES
Use these sheets however you like. Check them all. Take and use anything you like, modify it for your paper.
ADDITIONAL MATERIAL
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Mixed Strategies - YouTube Video that's presented similar to the way we do in class. Note: I let p = prob(P2 chooses s1) and q = prob(P1 chooses s1). They switch them in this video. Otherwise, very similar to how I present it.
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Another version of Harsanyi's Centipede game - YouTube Video, useful for understanding strategies and backward induction, extensive form games.
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Bridge Burning and Commitment - YouTube Video, useful for extensive forms, SPE, and also understanding the key nature of strategies and commitment
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Joel Watson's lectures for undergrads. The great thing is that all his notation will be the same as what we use since we follow his textbook closely.