This class exists in these courses :
• IÉSEG > IESEG Degree - Programme Grande École > Semester 2 > 2,00 ECTS

Prerequisites

This is an advanced course and sutdents should have a good understanding of the basic functional courses like marketing, finance and operations. Students who sign up for this course, should also have, at the very least a basic knowledge of the key concepts of strategic management. The course requires considerable out of the box thinking and therefore a good grounding in rational thinking and a natural abilty to do extensive analysis will be a distinct advantage. It is imperative that they are willing, and able, to study (and then analyse) academic texts on their own. The ability to ask critical questions and to pursue independent work is essential for success in this course.

Learning outcomes

At the end of the course, the student should be able to:
understand the role of game theory in developent of business strategies
• identify key issues and predict outcomes in rational situations
• structure busines situations using game-theoretic models which could be used in the decision making process
• work through higher levels of complexity of thinking, analyzing and reasoning
• understand the dynamics of inter-firm interactions
• enhance their ability to think critically

Course description

Classification of games and use of game theory in business strategy
Distinguishing games from decisions
Exetnsive form games and rollback equilibrium
Prisoners' Dilemma
Zero sum games
Nash Equilibrium
Commitment and Credibility
Private and Public auctions

Class type

Class structure

Teaching methods

• E-learning
• Presentation
• Project work
• Seminar

Assessment

The assessment would be a combination of continuous assessment through participation in class and case study assignments that will allow assessment of application of concepts covered in class. The students will present the case solutions in class. There will be a final exam that will comprehensively assess the learnings from the course.

Recommended reading

• Martin Osborne “An Introduction to Game Theory” OUP -

• A set of articles and reading material will also be provided. -