Course Name: Course Status: Credits:

Games in Business and Economics

Elective 2

Course Description: The course uses concepts from Game Theory to develop analytical thinking about Business situations (but not limited to only Business Situations). The Corse would consist of learning Game Theory concepts, and its applications in various real world situations like Bargaining, Cooperation, Pricing Strategy, Share Market decisions etc. Focus would be on understanding the real world situation through the glasses of Game theory. The course requires the students to participate in various in-class strategic games and learn various concepts while playing the games. Course Content: 1) A case of synchronized attack -Understanding perfect information 2) Rationality and what it means 3) How to save world by building Nuke arsenal -Understanding Nash Equilibrium 4) Matching pennies -Best Reaction Curve and Mixed Strategy equilibrium 5) My win your loss, your win my loss - Zero Sum Games 7) Looking ahead and reasoning backwards -Backward Induction 6) How to split the pie - Bargaining and negotiations 8) Whom to elect -Strategic voting 9) The king Lear Problem -Competition and Coordination 10) Prepare a face to meet the faces that you meet -Interpreting and Manipulating Information 11) What and when to Bid -Auctions Textbook: Thinking Strategically - Avinash Dixit and Barry Nalebuff The Art of Strategy- Avinash Dixit and Barry Nalebuff Intermediate Microeconomics Hal Varian

Learning Outcomes: After successful completion of the course, the students will be able to don the glasses of game theory and watch the real world issues in a strategic way. Method of Evaluation Students will be evaluated through a mix of take home strategy games, inclass games and exams. Internal Evaluation: 40 Mid-semester exam: 20 Final Exam: 40 Session Plan: Games in Business and Economics

Session 1 2 3 4 5 6 7 8 9 10 11 12 13 14

Topic Strictly Dominant Strategy and Perfect information Rationality Nash Equilibrium Nash Equilibrium Sequential Games and Backward Induction Sequential Games and Backward Induction Mixed Strategy and Best Reaction Curves Mixed Strategy and Best Reaction Curves Interpreting and Manipulating Information Interpreting and Manipulating Information Cooperation and Coordination Auctions Voting Bargaining