Game Theory Applications Lecture Notes 11/8/2018 Game Theory Applications Galina Albert Schwartz Department of Finance University of Michigan Business School 11/8/2018 Lecture Notes in Game Theory Game Theory Applications

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) 11/8/2018 Lecture Notes in Game Theory

Lecture Notes in Game Theory 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 11/8/2018 Lecture Notes in Game Theory

Practical Matters III: Readings Textbook: Dixit, A. & Skeath, S., (1999), Games of Strategy Cases are drawn mostly from: Lewis, Michael, (1990), Liar's Poker 11/8/2018 Lecture Notes in Game Theory

Practical Matters IV: How to find me My office: D3270A (Davidson Hall) My e-mail: galka@umich.edu My office hours: Mon., 10am - 12pm & Th., 1pm - 3pm, or by appointment 11/8/2018 Lecture Notes in Game Theory

Lecture Notes in Game Theory 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 11/8/2018 Lecture Notes in Game Theory

Lecture Notes in Game Theory What is in the game? Chance Skill Strategy But: the proportions differ in different games 11/8/2018 Lecture Notes in Game Theory

Lecture Notes in Game Theory What matters to win? Skill Strategy Luck Information examples: opponent weather 11/8/2018 Lecture Notes in Game Theory

Lecture Notes in Game Theory Summary of Today Subject & structure of the course Why games & Who plays them? Lewis, Chapter 1 as an example 11/8/2018 Lecture Notes in Game Theory