F1IP 4100 - Game Theory in Banking, Finance, and the International Arena

A game is any strategic situations in which an agent's success in making choices depends on the choices of others. The agents involved can be consumers, citizens, voters, investors, firms, regulatory authorities, governments, central banks… Game theory studies agents' behavior in situations of antagonism, negotiation, uncertainty, cooperation or competition in order to identify optimal strategies.

Each chapter comes with an exercises sheet that the student is supposed to complete in between two classes. Sessions 1-3: Introduction and Chapter 1: Simultaneous games

Sessions 4-5: Chapter 2: Sequential games

Sessions 6-7: Chapter 3: Repeated games

Sessions 8-9: Chapter 4: Incomplete information games

Sessions 10-11: Oral groups presentations

Session 12: Final exam

Learning Outcomes

Students will learn how:

- to recognize and model strategic situations;

- to predict when and how their actions will influence the decisions of others;

- to rationally deal with uncertainty;

- to solve problems using mathematical optimization ; and

- to exploit strategic situations for their own benefit.

A specific focus will be put on games with applications to international relations, banking, finance and economics.

Professionnal Skills

Students will develop their:
1. soft skill of communicating clearly and successfully on complex topics;
2. ability to analyze a real-life situation and apprehend a problem as an economist would do;
3. rigor in the treatment of a case study; and
4. experience in teamwork.

Jérôme MATHIS

Séminaire

English

- In Class Presence: 2 hours a week / 24 hours a semester

- Reading and Preparation for Class: 2 hours a week / 24 hours a semester

- Research and Preparation for Group Work: 40 hours a semester

- Research and Writing for Individual Assessments: 10 hours a semester

Microeconomics. This course is an introduction to game theory and is not intended for students who already have advanced training in this topic.

Autumn 2023-2024

The course will be graded based on: an oral presentation of a group project applying concepts learned in class to a real world example (40%); and a final exam (60%).

Sessions will take the form of a lecture based on the slides distributed upfront to students and a extended discussion of the exercises that students are supposed to prepare at home. Every session is divided in two parts. The first part is devoted to the presentation of new concepts and tools of game theory. The second part is devoted to solving exercises.