Game Theory Applications

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Game Theory Applications

• Galina Albert Schwartz
• Department of Finance
• University of Michigan
• Business School

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Lecture 1 Practical Matters I

• Prerequisites BE 501
• Attendance -- desirable, but not mandatory
• Two Home Assignments 30
• Class Participation -- up to 30
• (substitutes for written work)

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Practical Matters II

• Midterm take-home 30
• Final Exam 40 take-home?
• Midterm Score could be dropped then Final is
  70
• If Final is not take home additional time could
  be purchased

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Practical Matters III Readings

• Textbook
• Dixit, A. Skeath, S., (1999),
• Games of Strategy
• Cases are drawn mostly from
• Lewis, Michael, (1990), Liar's Poker

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Practical Matters IV How to find me

• My office D3270A (Davidson Hall)
• My e-mail galka_at_umich.edu
• My office hours
• Mon., 10am - 12pm Th., 1pm - 3pm,
• or by appointment

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Subject Structure

• What is a game of strategy?
• Why do we care about games?
• Our strategy for studying games of strategy
• Classification of Games
• Concepts and Techniques
• Examples of Games

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What is in the game?

• Chance
• Skill
• Strategy
• But the proportions differ in different games

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What matters to win?

• Skill
• Strategy
• Luck
• Information
• examples
• opponent
• weather

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Summary of Today

• Subject structure of the course
• Why games
• Who plays them?
• Lewis, Chapter 1 as an example