• Class Number 8532
  • Term Code 2960
  • Class Info
  • Unit Value 6 units
  • Mode of Delivery In Person
    • Dr Sander Heinsalu
    • Dr Sander Heinsalu
  • Class Dates
  • Class Start Date 22/07/2019
  • Class End Date 25/10/2019
  • Census Date 31/08/2019
  • Last Date to Enrol 29/07/2019
SELT Survey Results

Game theory provides a framework that helps to understand and analyse situations where many agents interact in a strategic setting, so that each agent’s well-being depends on the behavior of the other agents. Game-theoretic techniques have been widely used in many sciences, and have been successfully applied in almost every field of economics, including macroeconomics, industrial organization, public economics, and many others. In addition, recent applications of game theory have yielded important insights in many other disciplines, such as political science, law, biology, finance, and computer science.
The aim of this course is to introduce the main ideas of game theory at a level suitable for advanced later-year undergraduate students. The theory will be illustrated by way of examples and applications, which will primarily be drawn from economics and political science. While the level of the course will be introductory, and formal mathematical prerequisites are minimal, the presentation of the material will rely on precise definitions and models, as well as rigorous logical reasoning and analysis.

Learning Outcomes

Upon successful completion, students will have the knowledge and skills to:

  1. demonstrate an understanding of selected models and concepts of game theory.
  2. produce simple economic models with basic game theory and analyse these with the techniques and principles from class.
  3. demonstrate an understanding of articles that apply introductory game theory
  4. analyse many situations from a strategic viewpoint.

Research-Led Teaching

The lecturer’s research is in applied game theory. Students will see the practical use of game theory in economic research. Some problems and examples will be taken from research articles in economic theory (simplified as appropriate), including Nobel prize-winning works.  

Examination Material or equipment

Only pens are allowed in the midterm and final examinations. No calculators, dictionaries, notes or course materials.  

Required Resources


Tadelis, Steven, Game Theory: An Introduction, Princeton University Press, 2013. Chapters 8, 10-14, 16-18.

Mailath, George J. and Larry Samuelson, Repeated Games and Reputations: Long-run Relationships, Oxford University Press, 2007.*

Jehle, Geoffrey A. and Philip J. Reny, Advanced microeconomic theory, Prentice Hall, 2000. Chapters 8-9.

Osborne, Martin J. and Ariel Rubinstein, A Course in Game Theory, MIT Press, 1994. Chapters 5-12*.

Myerson, Roger B., Game Theory: Analysis of Conflict, Harvard University Press, 1991. Chapters 2-4, 6-10*.

More recent editions of these books are also acceptable.

*These books are accessible for free online, e.g. through the ANU library website. 

Staff Feedback

Students will be given feedback in the following forms in this course:

  • Written comments
  • Verbal comments
  • Feedback to the whole class, to individuals

Student Feedback

ANU is committed to the demonstration of educational excellence and regularly seeks feedback from students. Students are encouraged to offer feedback directly to their Course Convener or through their College and Course representatives (if applicable). The feedback given in these surveys is anonymous and provides the Colleges, University Education Committee and Academic Board with opportunities to recognise excellent teaching, and opportunities for improvement. The Surveys and Evaluation website provides more information on student surveys at ANU and reports on the feedback provided on ANU courses.

Other Information

Each week, the tutorial questions for the next week’s tutorials will be uploaded. Students are expected to solve the questions prior to attending the relevant tutorial. The answers will be discussed in the tutorial. To participate in the discussion, students need to prepare by solving the practice problems. Answers are based on the tutorial discussion and will not necessarily be posted online.  

Class Schedule

Week/Session Summary of Activities Assessment
1 Bayesian games, equilibrium concepts and refinements. Unawareness.
2 Applications of Bayes’ rule in games and single-agent decisions.
3 Insurance, adverse selection, speculative trade. Possible quiz
4 Information unravelling, quality certification, verifiable disclosure. Possible quiz
5 Cheap talk. Herding. Possible quiz
6 Cheap talk to a committee with public vs private messages. Mid-semester exam, possible quiz
7 Signalling, limit pricing, reputation building. Possible quiz
8 Countersignalling, repeated signalling. Possible quiz
9 Bargaining. Voting over voting power. Stable coalitions. Possible quiz
10 Disenfranchisement. Social mobility, norms and laws. Possible quiz
11 Career concerns. Incentives for advocates. Possible quiz
12 Insider trading. Social value of public information. Possible quiz

Tutorial Registration

You are expected to attend one tutorial each week from Week 2 onwards. You must enrol in a tutorial using the Wattle site for this course, and attend the tutorial in which you are enrolled. A selection of tutorials will be open for enrolment prior to the beginning of the semester - the remaining tutorials will be open in week 1 of Semester. When tutorials are available for enrolment, follow these steps:

1.   Log on to Wattle, and go to the course site

2.   Click on the link “Tutorial enrolment”

3.   On the right of the screen, click on the tab “Become Member of…..” for the tutorial class you wish to enter

4.   Confirm your choice

If you need to change your enrolment, you will be able to do so by clicking on the tab “Leave group….” and then re-enrol in another group. You will not be able to enrol in groups that have reached their maximum number. Please note that enrolment in ISIS must be finalised for you to have access to Wattle.

Assessment Summary

Assessment task Value Due Date Return of assessment Learning Outcomes
In-class quizzes 15 % 29/07/2019 25/10/2019 1,2,3,4
Mid-semester exam 35 % 26/08/2019 20/09/2019 1,2,3,4
Final exam 50 % 31/10/2019 28/11/2019 1,2,3,4

* If the Due Date and Return of Assessment date are blank, see the Assessment Tab for specific Assessment Task details


ANU has educational policies, procedures and guidelines, which are designed to ensure that staff and students are aware of the University’s academic standards, and implement them. Students are expected to have read the Academic Misconduct Rule before the commencement of their course. Other key policies and guidelines include:

Assessment Requirements

The ANU is using Turnitin to enhance student citation and referencing techniques, and to assess assignment submissions as a component of the University's approach to managing Academic Integrity. For additional information regarding Turnitin please visit the ANU Online website Students may choose not to submit assessment items through Turnitin. In this instance you will be required to submit, alongside the assessment item itself, hard copies of all references included in the assessment item.

Moderation of Assessment

Marks that are allocated during Semester are to be considered provisional until formalised by the College examiners meeting at the end of each Semester. If appropriate, some moderation of marks might be applied prior to final results being released.


This is an on-campus course. Attendance at all teaching events, while not compulsory, is expected in line with “Code of Practice for Teaching and Learning”, clause 2 paragraph (b).

 In addition, tutorials are a discussion-based class. Providing worked solutions would not effectively compensate for missing a tutorial. Students who, through unavoidable and unplanned occurrences, are unable to attend a tutorial class one week are encouraged to work through the problems and attend a consultation session for discussion and solutions.


See information above in Assessment Tasks regarding examinations.  

Assessment Task 1

Value: 15 %
Due Date: 29/07/2019
Return of Assessment: 25/10/2019
Learning Outcomes: 1,2,3,4

In-class quizzes

Four (4) times during the semester an in-class or in-tutorial quiz will be administered by the lecturer or tutor. The questions will be based on material covered in the course up to the quiz time. The best 3 out of 4 quizzes will count 5% each towards the final grade. If you miss a quiz for a legitimate reason, documentation must be provided to the course coordinator or administrator. This is not necessary if you miss only one quiz, but is necessary when missing more than one. Missing more than one quiz leads to re-weighting the remaining quizzes. Missing all quizzes leads to a grade of zero on this assessment item. Quizzes will be held at the start of the lecture or tutorial. Lateness of the student means less time for the student to complete the quiz.

Assessment Task 2

Value: 35 %
Due Date: 26/08/2019
Return of Assessment: 20/09/2019
Learning Outcomes: 1,2,3,4

Mid-semester exam

The mid-semester exam will take place during the ANU mid-semester exam period (weeks 6-7). The exam will cover material presented in the course up to the time of the exam. Attendance of the mid-semester exam is compulsory. The exam counts for 35% of the final grade. Further details will be discussed in the lectures.  

Assessment Task 3

Value: 50 %
Due Date: 31/10/2019
Return of Assessment: 28/11/2019
Learning Outcomes: 1,2,3,4

Final exam

The final exam will take place during the ANU final exam period. The exam will cover the material of the entire course. Attendance of the final exam is compulsory. The exam counts for 50% of the final grade. Further details will be discussed in the lectures.  

Academic Integrity

Academic integrity is a core part of our culture as a community of scholars. At its heart, academic integrity is about behaving ethically. This means that all members of the community commit to honest and responsible scholarly practice and to upholding these values with respect and fairness. The Australian National University commits to embedding the values of academic integrity in our teaching and learning. We ensure that all members of our community understand how to engage in academic work in ways that are consistent with, and actively support academic integrity. The ANU expects staff and students to uphold high standards of academic integrity and act ethically and honestly, to ensure the quality and value of the qualification that you will graduate with. The University has policies and procedures in place to promote academic integrity and manage academic misconduct. Visit the following Academic honesty & plagiarism website for more information about academic integrity and what the ANU considers academic misconduct. The ANU offers a number of services to assist students with their assignments, examinations, and other learning activities. The Academic Skills and Learning Centre offers a number of workshops and seminars that you may find useful for your studies.

Online Submission

The ANU uses Turnitin to enhance student citation and referencing techniques, and to assess assignment submissions as a component of the University's approach to managing Academic Integrity. While the use of Turnitin is not mandatory, the ANU highly recommends Turnitin is used by both teaching staff and students. For additional information regarding Turnitin please visit the ANU Online website.

Hardcopy Submission

For some forms of assessment (hand written assignments, art works, laboratory notes, etc.) hard copy submission is appropriate when approved by the Associate Dean (Education). Hard copy submissions must utilise the Assignment Cover Sheet. Please keep a copy of tasks completed for your records.

Late Submission

No submission of assessment tasks without an extension after the due date will be permitted. If an assessment task is not submitted by the due date, a mark of 0 will be awarded.

Referencing Requirements

Accepted academic practice for referencing sources that you use in presentations can be found via the links on the Wattle site, under the file named “ANU and College Policies, Program Information, Student Support Services and Assessment”. Alternatively, you can seek help through the Students Learning Development website.

Returning Assignments

In-class quizzes will be returned by the end of the week following the one in which the quiz was held.

Extensions and Penalties

Extensions and late submission of assessment pieces are covered by the Student Assessment (Coursework) Policy and Procedure The Course Convener may grant extensions for assessment pieces that are not examinations or take-home examinations. If you need an extension, you must request an extension in writing on or before the due date. If you have documented and appropriate medical evidence that demonstrates you were not able to request an extension on or before the due date, you may be able to request it after the due date.

Resubmission of Assignments


Privacy Notice

The ANU has made a number of third party, online, databases available for students to use. Use of each online database is conditional on student end users first agreeing to the database licensor’s terms of service and/or privacy policy. Students should read these carefully. In some cases student end users will be required to register an account with the database licensor and submit personal information, including their: first name; last name; ANU email address; and other information. In cases where student end users are asked to submit ‘content’ to a database, such as an assignment or short answers, the database licensor may only use the student’s ‘content’ in accordance with the terms of service — including any (copyright) licence the student grants to the database licensor. Any personal information or content a student submits may be stored by the licensor, potentially offshore, and will be used to process the database service in accordance with the licensors terms of service and/or privacy policy. If any student chooses not to agree to the database licensor’s terms of service or privacy policy, the student will not be able to access and use the database. In these circumstances students should contact their lecturer to enquire about alternative arrangements that are available.

Distribution of grades policy

Academic Quality Assurance Committee monitors the performance of students, including attrition, further study and employment rates and grade distribution, and College reports on quality assurance processes for assessment activities, including alignment with national and international disciplinary and interdisciplinary standards, as well as qualification type learning outcomes. Since first semester 1994, ANU uses a grading scale for all courses. This grading scale is used by all academic areas of the University.

Support for students

The University offers students support through several different services. You may contact the services listed below directly or seek advice from your Course Convener, Student Administrators, or your College and Course representatives (if applicable).
Dr Sander Heinsalu

Research Interests

Game theory, microeconomics

Dr Sander Heinsalu

Friday 10:00 11:00
Friday 10:00 11:00
Dr Sander Heinsalu

Research Interests

Dr Sander Heinsalu

Friday 10:00 11:00
Friday 10:00 11:00

Responsible Officer: Registrar, Student Administration / Page Contact: Website Administrator / Frequently Asked Questions