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You are here Postgraduate > MSc in Economics > Course Structure > Game Theory

Game Theory

Module Code: ECP77044

  • ECTS Credit: 5
  • Mandatory/Optional: Mandatory for International Development, optional for others
  • Module Coordinator: Professor  Tara Mitchell

Aims of Module

Game theory has become a powerful tool of economic analysis for situations where a small number of economic agents (firms, governments, individuals) behave interdependently, i.e. anticipate how their decisions affect others and how these others will then react. This module will introduce the building blocks of game theory and present the most important equilibrium concepts used to solve games. These techniques will then be applied to solve examples based on a variety of economic settings.

Module Delivery

The module will be delivered through a combination of lectures (8 hours) and tutorials (3 hours).

Learning Outcomes

On completion of the module, students will be able to:

  • Describe models in game theory, especially as they relate to economics
  • Use game theory models to analyse applied economic problems
  • Derive economic insights from models in game theory


    1. Strategic Form Games - Nash Equilibrium

    2. Bayesian Games - Bayesian-Nash Equilibrium

    3. Extensive Form Games – Subgame Perfect Equilibrium

    4. Perfect Bayesian Equilibrium, Sequential Equilibrium, Signalling


Primary textbook:

Jehle, Geoffrey A. and Philip J. Reny (2011). Advanced microeconomic theory. 3rd ed. Harlow: Financial Times - Prentice Hall

Recommended reading:

Gibbons, R. (1997), “An Introduction to Applicable Game Theory,” Journal of Economic Perspectives, Vol. 11, No. 1 (Winter 1997), pp. 127-149.


Assessment for the module is based on a final exam accounting for 50% of the grade. In addition, students will hand in weekly problem sets making up the remaining 50%.