Topics on Economic Analysis involving Game Theory

ECS541NFB Topics on Economic Analysis involving Game Theory

  • Topics


  • Learning outcome

    Learning outcome

    Course Objective:


    In the last forty years, researchers in economics have applied game theory to analyze a varied spectrum of economic issues; ranging

    from strategic individual decisions to government interventions. The objective of this course is to introduce the students to economic research that compellingly applies game theory. The course will be based on research articles on selected topics and will cover articles ranging from pioneering to very recent.


    Learning Outcomes:


    By successfully completing the course, the students

    will learn:

    • how researchers have used game theory to model and analyze economic problems.
    • how to identify new and existing important economic problems that can be analyzed using game theory.
    • how to model and analyze an economic problem using game theory.

  • Teaching


     November 19-23,

    Structure of the Course:

    I will present ten double hour lectures. I will strongly encourage discussions during the presentations.

  • Required prerequisites

    Required prerequisites

    The students should have good knowledge of microeconomics and game theory. Competence in courses such as ECS505 (Advanced microeconomic theory II at NHH) or equivalent will be suffcient.

  • Assessment


    Pass/Fail options. In order to receive credits, you will need to pass a take-

    home test.

  • Semester




  • Literature


    Topics and Journal Articles:

    Multi-period Oligopoly:

    • Saloner, G., 1987. Cournot duopoly with two production periods. Journal of Economic Theory 42, 183.187.
    • Pal, D., 1991. Cournot Duopoly with Two Production Periods and Cost Diferentials, Journal of Economic Theory, 55, 441-448.
    • Mujumdar, S., and D. Pal, 2007. Managerial Incentives in a Two Period Cournot Duopoly, Games and Economic Behavior, 58, 338-353.
    • Anand, K., and K. Girotra, 2007. The Strategic Perils of Delayed Di¤er-entiation, Management Science, 53, 697-712.


    State-owned Enterprises and Privatization:

    • Fjell, K., and D. Pal, 1996. A Mixed Oligopoly in the Presence of Foreign Private Firms, Canadian Journal of Economics, 29, 737-743.
    • Matsumura, T., 1998. Partial Privatization in Mixed Duopoly, Journal of Public Economics, 70, 473-483.
    • De Fraja, G., 2009. Mixed Oligopoly: Old and New, Working Paper. University of Leicester. Government Regulation and Antitrust:
    • Sappington, D., 2005. On the Irrelevance of Input Prices for Make-or-Buy Decisions, American Economic Review, 95, 1631-1638.
    • Klumpp, T. and X. Su, 2010. Open Access and Dynamic Effciency. American Economic Journal: Microeconomics, 2, 64-96.
    • Fjell, K., Foros, O., and D. Pal, 2010. Endogenous Average Cost Based Access Pricing. Review of Industrial Organization, 36, 149-162.
    • Bose, A., Pal, D., and D. Sappington, 2012. On the Trade-offs Between Antitrust and Regulation, Work in Progress. University of Cincinnati.
    • Fjell, K., Pal, D., and D. Sappington, 2012. Advantages of Endogenous Access Pricing. Working paper. University of Cincinnati. Sabotage in Tournaments and in Teams:
    • Lazear, E., and S. Rosen, 1981. Rank-Order Tournaments as Optimum Labor Contracts. Journal of Political Economy, 89, 841-864.
    • Harrington, J., and G. Hess, 1996, A Spatial Theory of Positive and Negative Campaigning, Games and Economic Behavior, 17, 209-229.
    • Bose, A., Pal, D., and D. Sappington, 2010. Equal Pay for Unequal Work: Limiting Sabotage in Teams, Journal of Economics andManagement Strategy, 19, 25-53.


    Cheap Talk:

    • Crawford, V., and J. Sobel, 1982. Strategic Information Transmission, Econometrica, 50, 1431-51.
    • Chakraborty, A. and R. Harbaugh, 2007. Comparative Cheap Talk, Journal of Economic Theory, 132, 70-94.
    • Chakraborty, A. and R. Harbaugh, 2010. Persuasion by Cheap Talk, American Economic Review.


    Supporting Textbooks:

    If you need to refresh your knowledge of Game Theory, you may .nd the

    following books useful:

    • Andreu Mas-Colell, Michael Whinston and Jerry Green. 1995. Microeconomic Theory, Oxford University Press.
    • Joseph Harrington. 2009. Games, Strategies, and Decision Making. Worth Publishers.


ECTS Credits
Teaching language

Course responsible

Debashis Pal, University of Cincinnati, Cincinnati, Ohio, USA