Module Identifier | EC30110 | ||
Module Title | OLIGOPOLY AND INTRODUCTION TO GAME THEORY | ||
Academic Year | 2001/2002 | ||
Co-ordinator | Professor John Cable | ||
Semester | Semester 1 | ||
Pre-Requisite | EC30230 | ||
Mutually Exclusive | EC31510 | ||
Course delivery | Lecture | 10 Hours | |
Seminars / Tutorials | 4 Hours | ||
Assessment | Exam | 1.5 Hours | 100% |
Oligopolistic interdependence
Incidence of oligopoly
Modelling problems
Game theory: history and method
Reading:
Gibbons, Preface
Lyons and Varoufakis, pp.79-83
Dixon, pp.127-128
2. A normal form game: the Prisoners' Dilemma
Description of normal form games
The Prisoners' Dilemma game
Strategic dominance as solution concept
Reading:
Gibbons, Ch 1, pp.1-8
3. Nash Equilibrium and Static Oligopoly Models
Nash Equilibrium
Cournot oligopoly
Bertrand oligopoly
Welfare comparisons
Reading:
Gibbons, Ch 1, pp.8-22
Lyons and Varoufakis, pp.84-88
Dixon, pp.128-136
4. Dynamic Games and Leader – Follower Behaviour
Description of dynamic games
Extensive form: 'game trees'
Backwards induction
Stackelberg equilibrium
Welfare comparisons
Reading:
Gibbons, Ch 2, pp.55-64
Dixon, pp.128-136
5. Perfect Equilibrium and Market Entry in Dynamic Games
The two stage entry game
Perfect equilibrium
Entry deterrence: the role of commitment and reputation
Reading:
Gibbons, Ch 2, pp.71-73
Lyons and Varoufakis, pp.88-91
Dixon, pp.145-155
6. Repeated Games
Co-operative Behaviour
Finitely repeated games
The chain-store paradox and two-period Prisoners' Dilemma
Infinitely repeated games
Co-operation in the Prisoners' Dilemma
Collusion amongst oligopolists: cartels and tacit collusion
Welfare comparisons
Reading:
Gibbons, Ch 2, pp.82-107
Lyons and Varoufakis, pp.99-106
Dixon, pp.155-161