The main focus of this unit is strategic interaction among economic agents with particular attention to problems involving incomplete information. The topics covered are at the heart of modern microeconomics. The central tool of analysis is game theory and the unit generally covers non-cooperative games of complete and incomplete information and cooperative games. Many applications to economic problems are discussed. Although the particular applications presented may vary from year to year, typical examples are: auctions; bargaining; oligopoly; hidden information; signalling; hidden action; coalitions and the core; Shapley value; social choice; and mechanism design.
Mid-semester test (40%), tutorial assignments (10%) and 2hr Final exam (50%)
Students must seek written permission from the School of Economics Postgraduate Coordinator to enrol in this unit.
Distinction or higher in ECON6001