Economics 684: Game Theory, Spring 2018


Instructor: Jeremy A. Sandford

Office phone number: 202-326-2766
email:jsandford@jhu.edu
Lecture: 6:00-8:30pm Thurs, Washington DC Center, room 207

Syllabus

Homework #1, answers
Homework #2, answers
Homework #3, answers
Homework #4, answers
Homework #5, answers


Schedule


Thursday, January 11: Introduction, normal form games, dominated strategies, Nash equilibrium, best response functions
reading: Gibbons, chapter 1
The poison scene in The Princess Bride (the entire movie is available on Netflix)

Thursday, January 18: Evolutionary interpretation of Nash equilibrium, games with infinite strategy sets, the tragedy of the commons
reading: Gibbons, chapter 1

Thursday, January 25: no class (professor illness)

Thursday, February 1: Dynamic games of complete information, backwards induction, commitment, subgame perfect equilibrium.
reading: Gibbons, chapter 2 (excluding section on repeated games)
Interview with Thomas Schelling
Wikipedia article on solved games

Thursday, February 8: Dynamic game applications, infinitely repeated games
reading: Gibbons, chapter 2

Thursday, February 15: Infinitely repeated games
reading: Gibbons, chapter 2

Thursday, February 22: efficiency wage application, Bayesian games
reading: Gibbons chapters 2-3
optional reading: "Did Henry Ford pay efficiency wages?" by Daniel Raff and Lawrence Summers, Journal of Labor Economics, 5(4), pp.S57-S86.
optional reading: The Simpsons on monitoring and punishing low effort
optional reading: Did Henry Ford Pay Efficiency Wages?

Thursday, March 1: Midterm exam, answers

Thursday, March 8:Bayesian games, independent values first and second price auctions, common values first price auctions
reading: Gibbons, chapter 3

Thursday, March 15: Extensive form Bayesian games, perfect Bayesian equilibrium, Spence education model
reading: Gibbons, chapter 4

Thursday, March 22: no class (spring break)

Thursday, March 29: Perfect Bayesian equilibrium, signalling games, the intuitive criterion
reading: Gibbons, chapter 4

Thursday, April 5: Statistical discrimination and pervasive wage differentials (background slides)
reading: Coate, S. and G. Loury (1993), Will affirmative-action policies eliminate negative stereotypes? AER, 83, pp.1220-1240
optional reading:Bertrand, M. and E. Duflo (2017). "Field experiments on discrimination," in A. Banerjee and E. Duflo eds., Handbook of Field Experiments

Thursday, April 12: Statistical discrimination and pervasive wage differentials
reading: Coate, S. and G. Loury (1993), Will affirmative-action policies eliminate negative stereotypes? AER, 83, pp.1220-1240

Thursday, April 19 (in class): final exam, answers (2017 final exam, answers)