Game theory and industrial organization 2400-M2EPTGiOR
Game theory:
• Individual decision making: decisions under uncertainty, risk, strict dominance, safety level, lotteries, von Neumann-Morgenstern utility function.
• Simultaneous games: normal form; safety level, dominance, rationality, best response, Nash equilibrium, existence of equilibria, alternative ways of solving a game, multi-actor games, applications.
• Sequential games: Games with complete and perfect information; games with imperfect information; extensive form; strategies sets; normal form vs extensive form; backward induction; Subgame perfect Nash equilibrium; applications.
• Bayesian games: games with incomplete information, games with randomness.
• Bargaining: definition of bargaining; reference point, the value of bargaining, bargaining set; contract, efficiency of contract; bargaining weights; bargaining models; equilibria.
• Repeated games: finitely vs. Infinitely repeated games.
• Verification of theory predictions with experiments.
Industrial Organization:
• Getting to know the industrial organization: the concept of industrial organization, reminding of the most important microeconomic concepts;
• Market power: market power limitations, market concentration, Lerner index, HHI index, cartels, natural monopoly.
• Dominant firm and competitive edge: dominant firm, competitive edge, monopoly in the durable goods market, Coase's theorem.
• Price differentiation: 1st, 2nd and 3rd degree differentiation, peak-load, time differentiation, two-part tariffs, bundling, auctions.
• Non-price differentiation: qualitative discrimination, types of goods based on quality, quality signaling strategies, network effects.
Type of course
Prerequisites (description)
Course coordinators
Term 2024Z: | Term 2023Z: |
Learning outcomes
The purpose of the course is to present to students the principles of game theory and industrial organization. The completion of the course should allow students to perform a theoretical analysis of market phenomena using economic models. KW01, KW02, KW03, KW04, KW05, KU01, KU02, KU03, KU04, KU05, KU06, KU07, KK01, KK02, KK03
Assessment criteria
The final grade consists of points that students can achieve through active participation in the class (i.e. delivering presentations) and a score on an exam. In total, students can obtain up to 100 points.
Grading:
[0-50] ndst
(50-60] dst
(60-70] dst +
(70-80] db
(80-90] db +
(90-100]bdb
100 bdb +
Bibliography
Liturature background necessary before starting the course:
• Varian H. R. (2002), Mikroekonomia: Kurs średni - ujęcie nowoczesne, Wydawnictwo Naukowe PWN, Warszawa
Literature for the course:
• Research articles described during each lecture
• Red. Krawczyk K. (2012), Ekonomia Eksperymentalna, Wolters Kluwer, Warszawa (oznaczenie: KR)
• Kusztelak P. (2012), Strategie produktowe Różnicować czy upodabniać - podejście teoriogrowe oraz weryfikacja eksperymentalna,
CeDeWu, Warszawa (oznaczenie: KU)
• Malawski M., Wieczorek A., Sosnowska H. (2004), Konkurencja i kooperacja. Teoria gier w ekonomii i w naukach społecznych
(oznaczenie: M)
• Rasmusen E., (2007), Games and Information: An Introduction to Game Theory, 4th edition, Blackwell Publishing, Oxford (oznaczenie: R)
• Watson, Joel (2005), Strategia: Wprowadzenie do teorii gier, Norton, New York (oznaczenie: W)
• Church J., Ware R., Industrial Organization. A Strategic Approach
• Shy O., Industrial Organization. Theory and Applications
• Shy O., The Economics of Network Industries.
Literatura dodatkowa:
• Aumann R., Hart S. (1992, 1994, 2002), Handbook of Game Theory with Economic Applications vol. 1-3, Elsevier Science B.V.
• Camerer C. F. (2003), Behavioral Game theory, Princeton University Press
• Dixit A. K., Nalebuff B. J. (2009), Sztuka strategii, MT Biznes, Warszawa
• Holt C. (2007), Markets, Games, & Strategic Behavior, Pearson education Inc.
• Łyszkiewicz W. (2000), Industrial Organization - Organizacja rynku i konkurencja, WSHiFM
• Tirole J., The Theory of Industrial Organization Carlton D., Perloff J., Modern Industrial Organization
Additional information
Additional information (registration calendar, class conductors, localization and schedules of classes), might be available in the USOSweb system: