1. 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

2. 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

3. 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

4. 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

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

6. 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

7. 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

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

9. 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