Game Theory and Information Economics

Aims of the course

The objective is to acquaint students with problems of imperfect and asymmetric information. We will survey game theoretic concepts from Nash Equilibrium to Sequential Equilibrium, which is a tool employed to resolve strategic situations between economic agents that differ in the amount of information they possess. Applications come from various fields: employee reward mechanisms, optimal composition of insurance products, contractual relations between owners and managers,...

Course syllabus

Basic Concepts of Non-cooperative Games
Nash Equilibrium in Games in Normal Form
Dynamic Games
Backward Induction and Subgame Perfect Nash Equilibrium
Games of Incomplete Information
Bayes-Nash Equilibrium of Normal Form Games
Subgame Perfect Nash Equilibrium Revisited
Sequential Equilibrium
Games of Asymmetric Information
Adverse Selection
Signaling
Screening
Principal-Agent Problem
Cases

Course director(s)