Economics 684: Game Theory, Spring 2017


Instructor: Jeremy A. Sandford

Office phone number: 202-326-2766
email:jsandford@jhu.edu
Lecture: 6:00-8:45pm Thurs, Washington DC Center, room 600U

Syllabus

Homework #1, answers
Homework #2, (LaTeX version), answers
Homework #3, (LaTeX version), answers
Homework #4, (LaTeX version), answers
Homework #5, (LaTeX version), answers
Homework #6 (uncollected), answers


Schedule


Thursday, January 12: 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 19: Evolutionary interpretation of Nash equilibrium, games with infinite strategy sets, the tragedy of the commons
reading: Gibbons, chapter 1

Thursday, January 26: 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 2: Dynamic game applications, infinitely repeated games
reading: Gibbons, chapter 2

Thursday, February 9: Infinitely repeated games
reading: Gibbons, chapter 2

Thursday, February 16: infinitely repeated games, efficiency wage application
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, February 23: Midterm exam, answers, (2016 midterm exam, answers, 2015 midterm exam, answers)

Thursday, March 2:Bayesian games, independent values first and second price auctions, common values first price auctions
reading: Gibbons, chapter 3

Thursday, March 9: Extensive form Bayesian games, perfect Bayesian equilibrium
reading: Gibbons, chapter 4

Thursday, March 16: Signalling games, Spence education model, the intuitive criterion
reading: Gibbons, chapter 4

Thursday, March 23: no class (spring break)

Thursday, March 30: Statistical discrimination and pervasive wage differentials (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 6: 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 13: Affirmative action in the Coate/Loury model, models of collusion
reading: Coate, S. and G. Loury (1993), Will affirmative-action policies eliminate negative stereotypes? AER, 83, pp.1220-1240
optional reading: AEA piece on naming Glenn Loury a Distinguished Fellow
optional reading: Glenn Loury writing about racial tension at Brown University (much of his public facebook page is also potentially of interest)

Thursday, April 20 (in class): Final exam, answers