University of Liege | Version française
	Study programmes 2008-2009 Last update : 29/06/2009
	ECON0929-1   Games and Information Economics Duration :   30h Th, 15h Pr Credits/ECTS :   Master in Economical Sciences, in-depth approach, 1st year Premier quadrimestre 5 Master in Economical Sciences, didactic approach, 1st year Premier quadrimestre 5 Master in Economical Sciences, Professional Focus in Economic Policies and Analysis, 1st year Premier quadrimestre 5 Master in Economical Sciences Premier quadrimestre 5 Holder(s) :   Axel Gautier Language :   Langue anglaise Course contents :   Game theory and information economics are recent subjects that have a growing importance in modern economics. Game theory formalizes strategic interactions between agents, with the aim of predicting a reasonable outcome. An auction is a typical example: several bidders must choose a bid and the outcome of the auction (price, allocation of the good) depends on the bid of all agents. Game theory develops tools to study such a situation. Information economics applies game theory to those situations where one party is better informed than the other. A regulated enterprise has superior information on its cost or demand conditions than the regulator; a supervisor is not perfectly informed on the sales' effort of his agents. In these situations, agents must receive the appropriate incentives, for cost reduction in the case of a regulated firm, for effort in the salesman case. Information economics is the tool to design these incentive schemes. This course is dedicated to the basic concepts of game theory and the applications of these tools to economic (or other) problems (auctions, regulation, bargaining, oligopoly,...). Course outline Static games (prisoner's dilemma or Cournot competition) Dynamic games and subgame perfect equilibrium (application: tacit collusion) Games of incomplete information (application: auction) Cooperative games Information economics (moral hazard and adverse selection). This course will be given in English Prerequisites :   Basic knowledge of single variable calculus and probability. Workshops :   Exercice sessions (15h) Assessment :   Written exam Contacts :   Lecturer: Axel GAUTIER Université de Liège Contact: agautier@ulg.ac.be Bureau I.49, BAT B31 Tel: 04/366.30.53 Assistant: Mickaël HILIGSMANN Université de Liège Contact M.Hiligsmann@ulg.ac.be 04/366.31.95 Home Search by Faculty Search by teacher Search by course code and title
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