University of Technology Sydney

23715 Game Theory and Strategic Decision Making

Warning: The information on this page is indicative. The subject outline for a particular session, location and mode of offering is the authoritative source of all information about the subject for that offering. Required texts, recommended texts and references in particular are likely to change. Students will be provided with a subject outline once they enrol in the subject.

Subject handbook information prior to 2022 is available in the Archives.

UTS: Business: Economics
Credit points: 3 cp
Result type: Grade and marks

There are course requisites for this subject. See access conditions.

Description

This subject will introduce students to the key concepts of game theory and show how these concepts are helpful to understand a wide range of interactions in the real world. These insights are also relevant to understand how people react strategically when you want to influence them.

Subject learning objectives (SLOs)

Upon successful completion of this subject students should be able to:
1. analyse the set of possible strategies agents could adopt in a situation of social interactions
2. forecast likely behaviours as an equilibrium of such situations
3. determine if a change in the structure of incentives intended to change a group behaviour is likely to work as intended

Contribution to the development of graduate attributes

This subject will develop students understanding of key aspects of game theory and enable them to make sense of and predict human behaviour in social interactions (GA1). Students will learn to break down the different incentives present in a situation for all the different agents taking part in it (GA2). They will learn to assess how these incentives and the knowledge about others’ incentives can be expected to shape the behaviour emerging in a group of people interacting (GA3). The analytic skills gained in this unit are of critical demand in the industry (GA5).

Graduate attributes:

  • GA1: Business knowledge and concept
  • GA2: Critical thinking, creativity and analytical skills
  • GA3: Communication and interpersonal skills
  • GA5: Business practice and oriented skills

This subject contributes to the development of the following program learning objective:

  • develop options to address identified behavioural economic factors in business problems (2.1)

Teaching and learning strategies

This subject is taught through a blend of online resources, self-directed study and seminars. Subject content will be presented to students in a variety of formats (lecture slides, notes, videos, articles) and delivered both online and in-class. At the beginning of the unit, students are expected to review materials and complete tasks on their own before attending a weekly Zoom review session with the lecturer. Materials will be provided to students on the teaching management system, but students are also expected to seek information independently.

At the end of the unit, seminars offer face to face interaction to review the material and engage students with the material. Seminars are highly interactive. Students will learn about game theory concept and methods and apply these to solve problems and case studies in-class, either individually or in small groups. Interactions and experimentation of different strategic games online will help the student familiarise with the concepts from game theory. Students will receive individual feedback in-class from the lecturer.

Content (topics)

  • The notion of equilibrium in a strategic interaction
  • Multiplicity of equilibria and equilibrium selection
  • Equilibrium in sequential moves games
  • Equilibrium in repeated games

Assessment

Assessment task 1: Quiz (Individual)

Objective(s):

This addresses subject learning objective(s):

1, 2 and 3

Weight: 35%
Criteria:
  • accuracy

Assessment task 2: Case Study (Individual)

Objective(s):

This addresses subject learning objective(s):

1, 2 and 3

Weight: 65%
Criteria:
  • clarity of exposition, rigour of analysis

Minimum requirements

Students must achieve at least 50% of the subject’s total marks.

Recommended texts

[Optional] Binmore, K., 2007. Game theory: a very short introduction(Vol. 173). Oxford University Press.