Intermediate Microeconomics module (BU32013)
Learn about game theory and its applications in economics and business. Covering non-cooperative and cooperative games, strategic decision-making, and key analytical techniques
Game theory is central to modern economics. This module gives you the technical knowledge to understand and apply it.
You'll start with non-cooperative game theory in normal form, learning how to identify equilibria when players choose strategies at the same time. You'll then move to extensive form games, which capture sequential decision-making where order matters.
The second part of the module covers cooperative game theory, first in two-player settings, then in many-player settings. Throughout, you'll develop your ability to represent strategic interactions using words, graphs, and algebra.
You'll apply game theory to business and economic situations, building analytical skills that support further study at Level 4. Lectures introduce new concepts each week. Tutorials give you practice solving problems and developing your reasoning.
What you will learn
In this module, you will:
- Understand the core principles of game theory and its applications in economics and business
- Represent strategic interactions using verbal, graphical, and mathematical approaches
- Study non-cooperative games in both normal and extensive forms
- Explore cooperative game theory in two-player and many-player settings
- Critically review published work on the theory of games
By the end of this module, you will be able to:
- Apply game theory principles and reasoning to a range of economic and business situations
- Represent game-theoretic ideas and analysis using words, graphs, and mathematics
- Explain the nature of strategic choice in non-cooperative and cooperative settings
- Apply game theory logically and interpret algebraic and graphical analysis
- Conceptualise strategic problems in a tractable form and critically synthesise published work on game theory
Assignments / assessments
Class test (30%)
- Assesses the more technical parts of the module
Written exam (70%)
- Two-hour exam
- Includes essay-based and technical questions covering all learning outcomes
Teaching methods / timetable
- Weekly lectures introducing game theory concepts and models
- Tutorials with problem-solving exercises and discussion
Regular office hours are available with lecturers and tutors for additional support and guidance.
Courses
This module is available on the following courses: