Game theory and information in economics

lecge1333  2019-2020  Louvain-la-Neuve

Game theory and information in economics
Note from June 29, 2020
Although we do not yet know how long the social distancing related to the Covid-19 pandemic will last, and regardless of the changes that had to be made in the evaluation of the June 2020 session in relation to what is provided for in this learning unit description, new learnig unit evaluation methods may still be adopted by the teachers; details of these methods have been - or will be - communicated to the students by the teachers, as soon as possible.
5 credits
30.0 h + 10.0 h
Davila Muro Julio; Dehez Pierre;
Main themes
The first part of the course provides the basis of decision theory and game theory. The second part is devoted to the economy of uncertainty. The third part is devoted to the Information Economy

At the end of this learning unit, the student is able to :

1 This course is designed for students of the orientation of the economy Bac ECGE (BAC3) who want to deepen the analysis of economic problems associated with uncertainty and information based on the tools of decision theory and games. The themes of uncertainty and information are vast. We chose to address the most important during the first ten weeks. We suggest a range of topics of interest for weeks: each year, specific topics will be treated according to the needs and tastes of students attending the course. An initial list of topics of interest is suggested. At the end of the course, students will master the theory of games used in the uncertain economy and information and be able to apply to economic problems in concrete they are relevant as tools for analysis and decision support.

The contribution of this Teaching Unit to the development and command of the skills and learning outcomes of the programme(s) can be accessed at the end of this sheet, in the section entitled “Programmes/courses offering this Teaching Unit”.
The course is divided into five chapters:
Chapter 1 Decision theory: preferences, utility, loteries, uncertainty, risk aversion
Chapter 2 Non-cooperative games: strategic form, best replies, dominant strategy,
Nash equilibria, extensive form, backward induction, subgame perfection,
Chapter 3 Two-player bargaining: axiomatic solutions.
Chapter 4 Cooperative games with transferable utility: characteristic function, cost sharing, core, Shapley value, normative applications.
Chapter 5 Voting games: weighted majority voting games, power indices.
Teaching methods
Lectures and exercises sessions
Evaluation methods
The grade will be determined by a final written examination
Online resources
Lecture notes and homeworks for the exercises sessions available on Moodle 
Faculty or entity

Programmes / formations proposant cette unité d'enseignement (UE)

Title of the programme
Minor in Economics

Additionnal module in Mathematics

Additionnal module in Economics

Master [120] in Forests and Natural Areas Engineering

Master [120] in Chemistry and Bioindustries

Master [120] in Agricultural Bioengineering

Bachelor in Philosophy, Politics and Economics

Master [120] in Environmental Bioengineering