Economic Applications of Game Theory

Readings

Recommended Books (Especially Useful for the Exercises)

Dutta, Prajit. Strategies and Games: Theory and Practice. MIT Press, 1999. ISBN: 9780262041690. [Preview with Google Books]

Watson, Joel. Strategy: An Introduction to Game Theory. W.W. Norton & Company, 2007. ISBN: 9780393929348.

Kreps, David. A Course in Microeconomic Theory. Princeton University Press, 1990. ISBN: 9780691042640.

Advanced Readings

These two books are very good but harder than the level at which the course is pitched.

Fudenberg, Drew, and Jean Tirole. Game Theory. MIT Press, 1991. ISBN: 9780262061414. [Preview with Google Books]

Osborne, Martin, and Ariel Rubinstein.  A Course in Game Theory. MIT Press, 1994. ISBN: 9780262650403. [Preview with Google Books]

Those who need an easier—and longer—exposition of the topics can read:

Dixit, Avinash, and Susan Sekeath. Games of Strategy. W.W. Norton & Company, 2009. ISBN: 9780393931129.

Textbook

[Gibbons] = Gibbons, Robert. Game Theory for Applied Economists. Princeton University Press, 1992. ISBN: 9780691003955. [Preview with Google Books]

TOPICS	READINGS
A More Formal Introduction to Games Extensive Forms and Normal Forms Strategies, Dominant Strategies and Iterative Elimination of Strictly Dominated Strategies Nash Equilibrium Applications of Nash Equilibrium	Extensive Forms and Normal Forms  [Gibbons] Chapters 1.1A, and 2.1A. Strategies, Dominant Strategies and Iterative Elimination of Strictly Dominated Strategies.  [Gibbons] Chapter 1.1B. Nash Equilibrium  [Gibbons] Chapter 1.1C. Applications of Nash Equilibrium  [Gibbons] Chapter 1.2.
Backward Induction Analysis of Extensive-Form Games Backward Induction Bargaining and Negotiations Applications	Analysis of Extensive-Form Games  [Gibbons] Chapter 2.1A. Bargaining and Negotiations  [Gibbons] Chapter 2.1D.
Subgame Perfection	[Gibbons] Chapter 2.2.
Repeated Games	[Gibbons] Chapter 2.3.
Implicit Cartels	[Gibbons] Chapter 2.3.
Incomplete Information Bayesian Nash Equilibrium Auctions Applications	Bayesian Nash Equilibirium  [Gibbons] Chapter 3.1A, C. Applications  [Gibbons] Chapter 3.2.
Dynamic Games of Incomplete Information Perfect Bayesian Nash Equilibrium Signaling Sequential Bargaining Under Asymmetric Information Reputation Forrmation	Perfect Bayesian Nash Equilibrium  [Gibbons] Chapter 4.1 Signaling  [Gibbons] Chapter 4.2A, and 4.4. Sequential Bargaining Under Asymmetric Information  [Gibbons] Chapter 4.3B.