# EC220 & 221 Mathematical Economics I

• #### Costas Cavounidis

12/15 CATS - Department of Economics
Autumn Module

### Principal Aims

Mathematical Economics 1A, "Game Theory," is an introduction to the rigorous mathematical study of strategic interactions. Students will learn how game theorists model such interactions, and how those models can be analyzed. By the end of the module, they will have developed a formidable toolbox of game-theoretic techniques, and will be familiar with a variety of applications of these techniques to real-world situations, both economic and otherwise.

### Principal Learning Outcomes

12 CATS

Subject Specific and Professional Skills:...demonstrate understanding of the tools of game theory, and the ability to apply them to wide classes of problems. The teaching and learning methods that enable students to achieve this learning outcome are: Lectures, seminars, guided reading and independent study. The summative assessment methods that measure the achievement of this learning outcome are: examination

15 CATS

Subject Specific and Professional Skills:...demonstrate understanding of the tools of game theory, and the ability to apply them to wide classes of problems. The teaching and learning methods that enable students to achieve this learning outcome are: Lectures, seminars, guided reading and independent study. The summative assessment methods that measure the achievement of this learning outcome are: Tests and examination

### Syllabus

12 CATS

The module will typically cover the following topics: Games in strategic form: Nash equilibrium and its applications to voting games, oligopoly, provision of public goods .Games in extensive form: sub game perfect equilibrium and its applications to voting games, repeated games. Static games with incomplete information: Bayesian equilibrium and its applications to auctions, contracts and mechanism design. Dynamic games of incomplete information: Perfect Bayesian equilibrium, Sequential equilibrium and its application to signalling games. Bargaining theory: Nash bargaining, non-cooperative bargaining with alternating offers and applications to economic markets. Evolutionary Game Theory Evolutionary game theory.

15 CATS

The module will typically cover the following topics:Games in strategic form: Nash equilibrium and its applications to voting games, oligopoly, provision of public goods.Games in extensive form: sub game perfect equilibrium and its applications to voting games, repeated games.Static games with incomplete information: Bayesian equilibrium and its applications to auctions, contracts and mechanism design.Dynamic games of incomplete information: Perfect Bayesian equilibrium, Sequential equilibrium and its application to signalling games.Bargaining theory: Nash bargaining, non-cooperative bargaining with alternating offers and applications to economic markets.Evolutionary Game Theory

### Context

Core Module
Y602 - Year 2, G300 - Year 2
Optional Core Module
GL11 - Year 2, GL12 - Year 2
Optional Module
L100 - Year 2, L1P5 - Year 1, L1PA - Year 1, LM1D (LLD2) - Year 2, V7MP - Year 2, V7MP - Year 3, V7MR - Year 2, V7MR - Year 3, V7MM - Year 4, V7ML - Year 2, G100 - Year 2, G100 - Year 3, G103 - Year 2, G103 - Year 3, R9L1 - Year 4, R3L4 - Year 4, R4L1 - Year 4, R2L4 - Year 4, R1L4 - Year 4, L1L8 - Year 2, L1L8 - Year 3, LA99 - Year 2, LA99 - Year 3
Pre or Co-requisites

12 CATS - Any of:

EC106-24 Introduction to Economics

OR

EC107-30 Economics 1

OR

EC137-15 Economics 1: Micro

Summary:

Modules: EC106-24

15 CATS - Any of:

EC106-24 Introduction to Economics OR

EC107-30 Economics 1 OR

EC109-30 Microeconomics 1 OR

EC137-15 Economics 1: Micro

AND (FOR ECONOMICS STUDENTS ONLY)

EC121-12 Mathematical Techniques A AND

EC122-12 Statistical Techniques A AND

EC125-6 Computing and Data Analysis

OR

EC123-12 Mathematical Techniques B AND

EC124-12 Statistical Techniques B AND

EC125-6 Computing and Data Analysis

EC106 or EC107 for GL11 and other Maths students

Summary:

Modules: EC106-24 or EC107-30 or EC109-30 or EC137-15 or (EC121-12 and EC122-12 and EC125-6) or (EC123-12 and EC124-12 and EC125-6)

### Assessment

Assessment Method
12 CATS - Online Examination (100%) 15 CATS - Coursework (20%) + Examination (80%)
Coursework Details
12 CATS: Online Examination (100%)
15 CATS: Examination (80%) , Test 1 (20%)
Exam Timing
Summer

### Exam Rubric

Time Allowed: 2 Hours