GAMES AND STRATEGIC THINKING

This optional course illustrates the main takeaways of game theory for managerial strategizing. There are “games businesses play” among them and in the public arena. Seizing opportunities or dealing with strategic uncertainty is facilitated by a mindset that takes into account incentives, beliefs and preferences of other actors, especially when transactions are not purely market-based.

The course aims to make students comfortable with using the language and tools of game theory for describing or analyzing managerial problems.

1. Knowledge and understanding:
1.1. Knowing models for the analysis of strategic issues;
1.2. Knowing how to present and interpret the results produced by these models to address managerial problems (widely interpreted);
1.3. Knowing the hypotheses at the basis of the models studied during the course and their logical consequences on the conclusions.

2. Applying knowledge and understanding:
2.1. Applying the models studied in the course to anazyze specific problems;
2.2. Comparing the results produced by alternative models based on different set of hypotheses and their limitations concerning the questions at hand;
2.3. Using empirical evidence to assess the plausibility of alternative set of assumptions fed into the models.

3. Evaluation and project skills:
3.1. Designing novel models (or tweaking existing one) to address new questions of interest;
3.2. Evaluating the contribution provided by models available in the literature to address questions of interest;
3.3. Thinking about the formulation of models aimed at improving the existing knowledge base or address specific issues.

4. Lifelong learning skills
4.1 Master complex theoretical reasoning;
4.2 Master principles of game theory to guide applications;
4.3 Ability to exploit new tools and adapt them to different contexts.

You are expected to have the analytical ability to draw logically correct conclusions from the premises. The formal prerequisites are one B.A. course covering Calculus and Linear Algebra and one B.A. course covering Discrete Probability. Previous exposure to worksheets and basic game-theoretic reasoning is helpful. (If you know what Excel and a Prisoners’ Dilemma are, you should be fine.)

The course explores the following topics:

Simultaneous games
Incentives
Duopoly models
Low efficiency traps
Sequential games
Credibility and commitment
First- or Second-move advantage
Zero-sum games
Interpreting information
Auctions and competitive bidding
Adverse selection and moral hazard
Long-term horizon and reputation
Value appropriation
Allocations
Bargaining and negotiation

Required
Teaching notes.

Recommended
(C) J. Carpenter and A. Robbett (2022), Game Theory and Behavior, The MIT Press.
(Sa) S. Sarkar (2016), Out-Think!: How to Use Game Theory to Outsmart Your Competition, Sage.
(SS) S. Sun and N. Sun (2018), Management Game Theory, Springer.

Optional readings will be suggested during the course.

Grading is based on a final written exam, which may be supplemented by an oral exam within five working days of the written test.

The exam is closed-notes and closed-book, but you may use a pocket calculator and both sides of an A4-sheet prepared by yourself at home.

After the written exam, a random sample of students is selected to take a short oral exam where they present and explain how how their answers were obtained. This oral exam is an integral part of the examination and is held within five working days of the written exam. Any student who does not show up for the oral exam is declared withdrawn; in this case, their exam is canceled and must be retaken in its entirety.

Finally, students who achieve a score no less than 30 on the written exam are offered the option to take an oral exam if they wish to try for honors (cum laude). This oral exam (held only upon request) assesses the ability to cross-reference and connect acquired knowledge to tackle more complex problems. It becomes an integral part of the exam and is held within five working days of the written exam. The score rom the written exam can either decrease or increase after the oral exam.

Failure to register for the exam is sufficient grounds for denying admission.

scritto e orale

Il/la docente ha il dovere di vigilare affinché siano rispettate le regole di autenticità e originalità delle prove d'esame. Di conseguenza, nei casi in cui vi sia il sospetto di un comportamento irregolare, l'esame può prevedere un ulteriore approfondimento, contestuale alla prova d'esame, che potrà essere realizzato anche in modalità differente rispetto alle modalità sopra riportate.

30 or above: excellent

27-29: very good

24-26: good

21-23: fair

18-20: satisfactory

All lectures are in-person. During the course, the lecturer provides a Study Guide, updated weekly, detailing the reading material to study after each lecture. The Guide may also list
exercises that are especially useful to prepare for the final exam.

Students are encouraged to ask their questions via email or on the course forum: answers to questions of general interest will be posted on the forum, available to all students.

For more information and updates, trust only the class Moodle page.

Ca’ Foscari abides by Italian Law (Law 17/1999; Law 170/2010) regarding support services and accommodation available to students with disabilities. This includes students with mobility, visual, hearing and other disabilities (Law 17/1999), and specific learning impairments (Law 170/2010). If you have a disability or impairment that requires accommodations (i.e., alternate testing, readers, note takers or interpreters) please contact the Disability and Accessibility Offices in Student Services: disabilita@unive.it.

Questo insegnamento tratta argomenti connessi alla macroarea "Capitale umano, salute, educazione" e concorre alla realizzazione dei relativi obiettivi ONU dell'Agenda 2030 per lo Sviluppo Sostenibile