Course Objectives

• Analyze market structures characterized by market power.

• Study non-cooperative game theory and its usefulness in analyzing economic phenomena involving strategic interdependence.

• Apply the concepts learned to study different models of oligopolistic competition and the stability of agreements.



Specific Competencies

1. Identify, model, and analyze economic phenomena related to market structures characterized by market power.

2. Analyze multiperson choice problems with strategic interdependence using game theory, propose solutions, and apply game theory to oligopolistic markets and other strategic interaction problems in economics.



Learning Outcomes

1. Ability to identify, model, and analyze economic phenomena related to market structures characterized by market power.

2. Ability to analyze multiperson choice problems with strategic interdependence using game theory and apply it to oligopolistic markets.

3. Ability to use marginal analysis in studying economic phenomena.



Cross-Module Competencies

1. C3: Formulate reasoned judgments and make decisions on relevant issues with critical capacity. Analyze information from various perspectives: verbal, analytical, and graphical.

2. C6: Ability to communicate in writing, particularly in creating clear and coherent reports.

3. C8: Ability to work in teams with responsibility, respect, initiative, and leadership. Participation in group work processes.



Contribution to Sustainable Development Goals

1. Contribution to Goal 12: The course enhances understanding of production processes and inefficiencies that can arise due to market power concentration. This analysis informs the design of sustainable production and consumption processes.

2. Contribution to Goal 13: Using game theory tools, we analyze the public goods game structure related to countries’ contributions to climate change mitigation. This structure reveals individual incentives for problem resolution and cooperation in this global issue.

3. Contribution to Goal 17: By applying game theory tools, we examine individual incentives for forming alliances and cooperation, both in the short and long term. Understanding these individual incentives is crucial for stable alliances and robust international cooperation.

• Topic 1: Introduction

• Topic 2: Nash Equilibrium

• Topic 3: Applications of Nash Equilibrium

• Topic 4: Extensive-Form Games with Perfect Information

• Topic 5: Applications of Extensive-Form Games with Perfect Information

• Topic 6: Extensions of Extensive-Form Games with Perfect Information

• Topic 7: Repeated Games

In the lecture sessions, various topics that make up the subject will be developed interactively. In practice classes and seminars, the professor will present exercises related to the material, real-world problems, and experiments. Students will individually and collaboratively address issues related to the topics discussed in the lecture sessions and participate in proposed educational activities.

Active methodologies will be employed, including:

1. Role Play: Students take on specific roles in situations of strategic interaction and participate in simulated scenarios to apply concepts and skills related to game theory.

2. Just-in-Time Teaching: Professors collect questions or concerns from students before class and adapt their teaching based on those responses.

3. The Muddiest Point: At the end of a lesson, students write down what they found most confusing or difficult to understand. This helps instructors address problematic areas.

4. Game-Based Learning: Using games or simulations to teach concepts and skills interactively. This methodology is particularly relevant in this course, as it analyzes strategic interaction through game theory.

5. Minute Paper: At the end of class, students briefly write about what they learned or their main doubts. This provides immediate feedback to the instructor.



The goal of these methodologies is to encourage active student participation and enhance their learning experience.



Additionally, problem-based learning will be used, presenting real-world problems that demonstrate the need for game theory tools, which will then be applied to problem-solving.

The evaluation for the course will be based on continuous assessment of the students’ competencies. This ongoing assessment will take into account activities in practice classes, seminars, and participation in lectures.

Additionally, there will be a written test comprising a final exam (on the official date) where students will solve both theoretical questions and practice exercises, accounting for 70% of the final grade if they participate in continuous assessment. The work done in seminars and practice classes throughout the course contributes 30% to the final grade.

Students who wish to do so have the option of a single final exam, which will account for 100% of the grade on the official dates.

To ensure that continuous assessment always has a positive impact on the final evaluation, the final grade will be the maximum of either (1) the final exam grade or (2) a weighted average of 0.3 for continuous assessment and 0.7 for the final exam.

Additionally, students participating in continuous assessment can take a final exam on the last day of class. Those who choose to do so can also attend the official final exam on the assigned date. The final grade will be the higher of the two options if they attend both opportunities.

Teaching materials on the Egela platform.

Basic bibliography

Osborne, Martin (2004). An Introduction to Game Theory. Oxford University Press.

In-depth bibliography

Gibbons, Robert (1992). A Primer in Game Theory. Prentice Hall.