Strategic Economic Thinking and Behaviour module (BU42021)

The module provides a comprehensive understanding of strategic decision-making in interactive scenarios.

It provides introduction to game theory and its applications to economics.

Game theory has profoundly changed the way economists think about and model economic problems. It has also influenced political science, biology, computer science, philosophy, and more.

It provides a methodology for analysing the strategic aspects of situations of conflict and cooperation.

The module emphasizes solution concepts, including dominant strategies, Nash equilibria, cooperation, conflict, dominance-solvable games, mixed strategies, and existence of equilibrium.

What you will study

In this module, you will:

• explore mathematical models and concepts to analyse the behaviour and outcomes of rational players in competitive and cooperative settings
• learn the fundamental concepts of games, players, strategies, and payoffs, and delve into different game types to understand their strategic implications
• learn to analyse strategic interactions, anticipate the actions of other players, and develop optimal strategies based on rational decision-making

By the end of this module, you will be able to:

• gain a solid foundation for understanding strategic decision-making and its applications in various fields
• display valuable analytical skills to assess and navigate complex interactive situations

Assignments / assessment

The coursework comprises the following:

• Problem set 1 (20%)
• Problem set 2 (20%)
• Discussion and class engagement (10%)
• Final exam (50%)

Teaching methods / timetable

You will learn by taking a hands-on approach.

This involves:

• Lectures and workshops (20 hours)
• Guided independent study including the completion of assessment tasks (130 hours)