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.

Recommended Resources

No textbook is formally required. The following books may be useful:

Mailath, George J. Modeling Strategic Behavior: A Graduate Introduction to Game Theory and Mechanism Design. World Scientific Publishing, 2020.

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

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 Con ict , Harvard University Press, 1991. Chapters 2-4, 6-10.

More recent editions of these books are also acceptable. Some editions of all these are accessible free online or via ANU library.

Staff Feedback

The lecturer will provide feedback to students individually and as a group, based on the assessment items, the interactions in consultation hours, Wattle forums and other contacts.

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

Raw grades are computed using the assessment weights described above. The final grades may be scaled from the raw marks. Any scaling will preserve the ranking of

students.

Class Schedule

Week/Session	Summary of Activities	Assessment
1	Extensive and normal form games, backward induction, dominance.
2	Games with unawareness. Equilibrium.	quiz
3	Bargaining, voting, disenfranchisement, social mobility.	quiz
4	Stable clubs and governments, enfranchisement. Bayesian games.	quiz
5	Bayes’ rule. Private information. Insurance.	quiz
6	Adverse selection.	quiz
7	Information unravelling. Cheap talk.
8	Cheap talk to multiple receivers.	quiz
9	Herding.	quiz
10	Signalling. Limit pricing.	quiz
11	Repeated and noisy signalling.	quiz
12	Insider trading. Applications and review.	quiz

Tutorial Registration

Tutorials will be delivered remotely for this semester. Sign up for tutorials will be available on the Wattle course site where more details can be found in O-week.

Assessment Summary

Assessment task	Value	Learning Outcomes
Quizzes	100 %	1,2,3

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

Policies

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:

• Student Assessment (Coursework) Policy and Procedure
• Special Assessment Consideration Policy and General Information 
• Student Surveys and Evaluations
• Deferred Examinations
• Student Complaint Resolution Policy and Procedure

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 Academic Integrity . 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.

Participation

Due to travel restrictions this course will be delivered through online platforms. Aspects of the delivery may be asynchronous or synchronous. Details on the delivery of this

course and expectations of student participation are outlined in further detail on the Wattle course site in O-week.

Assessment Task 1

Quizzes

Ten (10) times during the semester there will be an online quiz testing knowledge covered in all preceding weeks (with emphasis on latest week's knowledge). Each

quiz will be worth 10 points and count for 10% of your final grade. The quizzes will be available with at least 2 days notice and be open for a period of 4 days. However,

you will only have approximately 1 hour to complete the quiz and you can only attempt the quiz once. There will be instructions at the beginning of each quiz. Make

sure you read them thoroughly before commencing. Further information on the quizzes will be provided on Wattle in week 1.

If you miss a quiz for a legitimate reason, documentation satisfying the relevant ANU regulations (as per special consideration policy here ) must be sent to sander.heinsalu@anu.edu.au, and your completed quizzes will be re-weighted. Quiz answers will be provided upon closure of the quiz and further detailed answers provided on Wattle.

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 may 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 (for example, a

pdf print of the webpage, a screenshot or a saved webpage). Unless an exemption has been approved by the Associate Dean (Education), submission must be through the

appropriate online platform, e.g. Turnitin. Further information will be provided on Wattle.

Hardcopy Submission

N/A

Late Submission

• Late submission not permitted. 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. Extensions may be granted 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).

• ANU Health, safety & wellbeing for medical services, counselling, mental health and spiritual support
• ANU Diversity and inclusion for students with a disability or ongoing or chronic illness
• ANU Dean of Students for confidential, impartial advice and help to resolve problems between students and the academic or administrative areas of the University
• ANU Academic Skills and Learning Centre supports you make your own decisions about how you learn and manage your workload.
• ANU Counselling Centre promotes, supports and enhances mental health and wellbeing within the University student community.
• ANUSA supports and represents undergraduate and ANU College students
• PARSA supports and represents postgraduate and research students