• Class Number 9037
  • Term Code 2960
  • Class Info
  • Unit Value 6 units
  • Mode of Delivery In Person
    • 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

In many - perhaps most - economic interactions, there is potential for strategic behaviour, a term, “intended to focus on the interdependence of the adversaries' decisions and on their expectations about each other's behaviour” (Schelling, 1960, The Strategy of Conflict).   Recognising and understanding such behaviour is an essential part of any economist's toolkit and this course is designed to enable just such recognition and understanding. Game theory has successfully been applied in a diverse range of fields, such as economics, political science, law, biology and computer science. The aim of this course is to provide an introduction to strategic thinking and analysis through the basic techniques of game theory and to illustrate the range of its applications in economics and business and other areas.  While the level of the course will be introductory, and mathematical prerequisites are minimal, the presentation of the material will rely on precise logical arguments.

Learning Outcomes

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

  1. recognise the strategic issues in a problem and demonstrate basic understanding of how a game theorist might decide on the appropriate tools to analyse it.
  2. demonstrate an understanding of the tools taught in class and be able to recognise their application to the analysis of simple real world situations.
  3. demonstrate an understanding of the underlying structure of games used in economics.
  4. demonstrate an understanding of simpler articles using game theory.

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 whole class, groups, individuals, focus group etc

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.

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 05/12/2019 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. In rare cases where online submission using Turnitin software is not technically possible; or where not using Turnitin software has been justified by the Course Convener and approved by the Associate Dean (Education) on the basis of the teaching model being employed; students shall submit assessment online via ‘Wattle’ outside of Turnitin, or failing that in hard copy, or through a combination of submission methods as approved by the Associate Dean (Education). The submission method is detailed below.

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.

At least one quiz will be marked and returned to students before August 30 to provide feedback before the end of week 6.

Marked quizzes will be returned to students in the tutorial by the end of the second week after 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. 

The exam is two hours long. Further details will be discussed in lectures in the first week.

Assessment Task 3

Value: 50 %
Due Date: 31/10/2019
Return of Assessment: 05/12/2019
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. 

The exam is two hours long. Further details will be discussed in lectures in the first week.

Academic Integrity

Academic integrity is a core part of the ANU culture as a community of scholars. At its heart, academic integrity is about behaving ethically, committing to honest and responsible scholarly practice and upholding these values with respect and fairness.

The ANU commits to assisting all members of our community to 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 be familiar with the academic integrity principle and Academic Misconduct Rule, 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 Academic Misconduct Rule is in place to promote academic integrity and manage academic misconduct. Very minor breaches of the academic integrity principle may result in a reduction of marks of up to 10% of the total marks available for the assessment. The ANU offers a number of online and in person services to assist students with their assignments, examinations, and other learning activities. Visit the Academic Skills website for more information about academic integrity, your responsibilities and for assistance with your assignments, writing skills and study.

Online Submission

You will be required to electronically sign a declaration as part of the submission of your assignment. Please keep a copy of the assignment for your records. Unless an exemption has been approved by the Associate Dean (Education) submission must be through Turnitin.

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

Individual assessment tasks may or may not allow for late submission. Policy regarding late submission is detailed below:

  • Late submission not permitted. If submission of assessment tasks without an extension after the due date is not permitted, 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.

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.

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

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