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syllabus - ECONOMICS 171 Introduction to Game Theory Phelps...

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E CONOMICS 171 G ARY C HARNESS F ALL , 2010 UCSB E CONOMICS 171: Introduction to Game Theory Phelps 1160, TR 9:30 – 10:45 P ROFESSOR G ARY C HARNESS [email protected] 3051 North Hall; Office Hours: Tuesdays 2:00 – 3:00 http://www.econ.ucsb.edu/~charness/econ171_fall_2010/index.html This course examines the economics of strategy using the tools of modern game theory. The insights from game theory can be important in understanding strategic interactions ranging from the pricing decisions, R&D investments, and marketing plans of business rivals, to the tactics used in salary negotiations, to the formation of regional trade alliances, to legislative voting behavior. We will first analyze the simplest of strategic situations, those in which actors make their decisions simultaneously and have complete information about each other’s payoffs. We will then analyze situations in which actors make their decisions sequentially and must think ahead about how others will respond to their decisions.
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