In many - perhaps most – economic, political, legal and social 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 analyst’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, military analysis, 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 almost all fields of social interaction.  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.  This course should be of interest to students from any part of the University.
 

Learning Outcomes

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

1. Demonstrate an understanding of how game theorists approach a strategic problem.
2. Demonstrate an understanding of the tools taught in class and be able to recognise their application to the analysis of real world situations.
3. Recognise the strategic issues in a problem and demonstrate an understanding of how a game theorist might decide on the appropriate tools to analyse it.

Research-Led Teaching

The lecturer is a user and developer of game theory in her own research. Consequently, students will be exposed to the use of game theory and strategic thinking in current

economics research, time permitting.

Examination Material or equipment

You will need a calculator (e.g. HP Scientific Calculator 300s+) for this exam. Moreover, a stable internet and (if invigilating via zoom or proctorio) a web camera are needed.

Required Resources

You will need access to a calculator to complete exercises required for this course.

Recommended Resources

Whether you are on campus or studying remotely, there are a variety of online platforms you will use to participate in your study program. These could include videos for lectures and other instruction, two-way video conferencing for interactive learning, email and other messaging tools for communication, interactive web apps for formative and collaborative activities, print and/or photo/scan for handwritten work and drawings, and home-based assessment.

ANU outlines recommended student system requirements to ensure you are able to participate fully in your learning. Other information is also available about the various Learning Platforms you may use.

No textbook is formally required but students should find the following useful (in this order). Watson, J. (2013), Strategy: an introduction to game theory 3e. Norton. ISBN 978-0-393-91838-0. Dixit, A., S. Skeath & D. Reiley (2015), Games of strategy. 4e. Norton. ISBN 978-0-393-91968. Osborne, M. (2009), An introduction to game theory Intn’l Ed. Oxford UP. ISBN 978-0-19-532248-4. Texts will be available in the library on short term reserve. Any older editions of these books will do.

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). Feedback can also be provided to Course Conveners and teachers via the Student Experience of Learning & Teaching (SELT) feedback program. SELT surveys are confidential and also provide the Colleges and ANU Executive with opportunities to recognise excellent teaching, and opportunities for improvement.

Class Schedule

Week/Session	Summary of Activities	Assessment
1	Introduction. Prisoner’s dilemmas; coordination. Ingredients of strategic form games. Dominance and iterative deletion. Domination & iterative deletion: applications. Reading W:1,6,7.
2	Best response and rationalizability: Applications Introduction to Nash equilibrium. Application: Imperfect competition. Reading W: 7, 8, 9 & 10	Tutorial activities
3	Nash equilibrium applications continued. Voter-candidate model, Schelling location game. Reading W:10	Tutorial activities and assignment 1 due.
4	Mixed strategies: applications. Tests of MSE play. Reading W: 11, 12.	Tutorial activities
5	Evolution and Game theory. Reading: Osborne Chapter 13 (especially 13.1 & 13.2)	Tutorial activities
6	Introduction to sequential games: backward induction, commitment. Reading W:21.	Tutorial activities and a ssignment 2 due.
7	Games of perfect information: credibility, reputation. Reading W:21.	Tutorial activities
8	Bargaining, introduction to imperfect information, information sets, subgame perfection. Reading W:19, 14, 15	Tutorial activities
9	Applications of SPE: strategic investment game, wars of attrition. Reading W:16 and Ghemawat (1997) Games businesses play (ch 7).	Tutorial activities and assignment 3 due.
10	Repeated games: cooperation in prisoner’s dilemma, infinitely repeated games. Reading W:22, 23	Tutorial activities
11	Games of incomplete information. Perfect Bayesian Equilibrium. Signaling. Reading W: 24-29	Tutorial activities
12	An alternative approach - best compromise alternative and perfect compromise equilibrium. Reading Schlad & Zapechelnyuk (2020) "Compromise, don't optimize: a prior-free alternative to perfect Bayesian Equilibrium."	Tutorial activities and assignment 4 due.

Tutorial Registration

ANU utilises MyTimetable to enable students to view the timetable for their enrolled courses, browse, then self-allocate to small teaching activities / tutorials so they can better plan their time. Find out more on the Timetable webpage. https://www.anu.edu.au/students/program-administration/timetabling].

Assessment Summary

Assessment task	Value	Learning Outcomes
Assigments	30 %	1,2,3
Final exam	70 %	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 Integrity Rule before the commencement of their course. Other key policies and guidelines include:

• Academic Integrity Policy and Procedure
• Student Assessment (Coursework) Policy and Procedure
• Special Assessment Consideration Guideline and General Information 
• Student Surveys and Evaluations
• Deferred Examinations
• Student Complaint Resolution Policy and Procedure
• Code of practice for teaching and learning

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 Skills 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.

Participation

Lectures F2F on campus with tutorials F2F and a zoom option for those unable to attend due to travel restrictions.

Assessment Task 1

Assigments

There will be four assignments that contribute 30% of the final mark. The 30% will be based on the best three marks received for the four assignments. Sometimes,

problems will be based on material that extends the lecture material; it's all right if you make mistakes, you will learn a lot from them. Each student must hand in an

individually written answer to each assignment, but group discussion is encouraged.

Given the fast turnaround for grading and returning the assignments (that is, within 1 week), it will not be possible to give extensions for any reasons. Please note that

since only the best three marks count, if for any reason a student is unable to submit their answers for one of the four assignments, that will have no effect on their

overall mark.

Assignments will be due Monday 5pm, Weeks 3, 6, 9 and 12. Your answers should be submitted via Turnitin. Please keep a copy of your submission for your own records

and for your own protection should there be any query regarding the on-time submission of your answers. Assignment questions will be made available on Wattle two

weeks prior to due date.

Assessment Task 2

Final exam

The final exam will contribute 70% of the overall mark. A three- hour comprehensive final exam. The exam will comprise of two sections. Section A will comprise 5 short

answer questions (true/false plus short explanation). Section B will comprise 2 or 3 longer more in depth questions. More details will be provided in lectures and on

Wattle closer to the date. Past exam papers are a good guide to the type of questions that will be asked.

You will need a calculator (e.g. HP Scientific Calculator 300s+), a stable internet and (if invigilating via zoom or proctorio) a web camera for this exam

Academic Integrity

Academic integrity is a core part of the ANU culture as a community of scholars. The University’s students are an integral part of that community. The academic integrity principle commits all students to engage in academic work in ways that are consistent with, and actively support, academic integrity, and to uphold this commitment by behaving honestly, responsibly and ethically, and with respect and fairness, in scholarly practice.

The University expects all staff and students to be familiar with the academic integrity principle, the Academic Integrity Rule 2021, the Policy: Student Academic Integrity and Procedure: Student Academic Integrity, and to uphold high standards of academic integrity to ensure the quality and value of our qualifications.

The Academic Integrity Rule 2021 is a legal document that the University uses to promote academic integrity, and manage breaches of the academic integrity principle. The Policy and Procedure support the Rule by outlining overarching principles, responsibilities and processes. The Academic Integrity Rule 2021 commences on 1 December 2021 and applies to courses commencing on or after that date, as well as to research conduct occurring on or after that date. Prior to this, the Academic Misconduct Rule 2015 applies.

 

The University commits to assisting all students to understand how to engage in academic work in ways that are consistent with, and actively support academic integrity. All coursework students must complete the online Academic Integrity Module (Epigeum), and Higher Degree Research (HDR) students are required to complete research integrity training. The Academic Integrity website provides information about services available to assist students with their assignments, examinations and other learning activities, as well as understanding and upholding academic integrity.

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.
• Late submission permitted. Late submission of assessment tasks without an extension are penalised at the rate of 5% of the possible marks available per working day or part thereof. Late submission of assessment tasks is not accepted after 10 working days after the due date, or on or after the date specified in the course outline for the return of the assessment item. Late submission is not accepted for take-home examinations.

Referencing Requirements

The Academic Skills website has information to assist you with your writing and assessments. The website includes information about Academic Integrity including referencing requirements for different disciplines. There is also information on Plagiarism and different ways to use source material.

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 Access 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