**Week 1 (13, 14 and 15 September)**

- Strategic games with ordinal preferences and examples
- The concept of Nash equilibrium
- Best response functions
- Dominated and dominant actions

Main reference: M.J. Osborne, *Introduction to Game Theory*, chapter 2

Problem Set 0: PS0

Problem Set 1: PS1 (**Students are reminded that Prof. Osborne does not allow for solutions to exercises to be published**)

**Week 2 (20 and 22 Sept) and week 3 (27 and 29 Sept)**

- Static oligopoly games with simultaneous moves: Cournot and Bertrand oligopoly games
- First- and second-price auctions with complete information (Tsukiji Fish Market here)
- Political competition
- The War of Attrition
- An Introduction to Multiunit Auctions (slides)

Main reference: M.J. Osborne, *Introduction to Game Theory*, chapter 3

Problem Set 2: PS2

Problem Set 3: PS3

**Week 4 (4 and 6 Oct) and week 5 (11 and 13 Oct)**

- Mixed strategy equilibrium: Definitions

Problem Set 4: here is the amended PS4

An simple auction with entry cost

Main reference: M.J. Osborne, *Introduction to Game Theory*, chapter 4

**Week 6 (18 and 20 Oct)**

- Extensive games with perfect information (finite horizon)
- The concept of subgame perfect equilibrium
- Illustrations: The Stackelberg duopoly, Entry games, the ultimatum game

Main reference: M.J. Osborne, *Introduction to Game Theory*, chapter 5 and 6

**Week 7 (27 and 29 Oct)**

- Extensive games with perfect information: Extensions
- The Centipede game; A sequential duel

Main reference: M.J. Osborne, *Introduction to Game Theory*, chapter 7

**The midterm exam will take place on Wednesday, 2 November at 3pm**

#### A mock midterm exam paper is here

Problem Set 5: PS5

**Week 9 (8 and 10 Nov) and week 10 (15 and 17 Nov)**

- Bayesian games; A simple example (BoS under asymmetric information)
- Applications: Auctions under incomplete information (Useful mathematical expressions) (deriving a symmetric equilibrium of the
-bidder first-price auction with uniformly distributed private values: here)*N*

Main reference: M.J. Osborne, *Introduction to Game Theory*, chapter 9

Problem Set 6: PS6

Problem Set 7: PS7

**Week 11 (22 Nov and 24 Nov) **

- An introduction to repeated games
- Grim trigger and tit-for-tat strategies
- Nash equilibria
- Application to collusion in oligopolistic markets (slides)
- The Economics of Tacit Collusion (link to the paper)

Main reference: M.J. Osborne, *Introduction to Game Theory*, chapter 14 (until section 14.7)

Problem Set 8: PS8

**Week 12 (29 Nov and 1 Dec)**

**Two tutorial classes and one lecture devoted to the solution of a mock final exam paper **

**A mock exam paper is here. To make it more effective, each student is advised to work on his/her own for 2 hours, attempting to reproduce the real exam environment. Solutions will be discussed on Thursday, 1 December from 10am until 11:30am.**

**One more mock exam question** **here**