Module Identifier | EC30110 | ||||||||
Module Title | OLIGOPOLY AND INTRODUCTION TO GAME THEORY | ||||||||
Academic Year | 2003/2004 | ||||||||
Co-ordinator | Professor John R Cable | ||||||||
Semester | Semester 1 | ||||||||
Pre-Requisite | EC30230 | ||||||||
Mutually Exclusive | EC36420 | ||||||||
Course delivery | Seminars / Tutorials | 4 Hours | |||||||
Lecture | 10 Hours | ||||||||
Assessment |
|
Oligopolistic interdependence
Incidence of oligopoly
Modelling problems
Game theory: history and method
Reading:
Nasar, Chs 6-13
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
This module is at CQFW Level 6