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Game Theory

How can you credibility signal your abilities when applying for a Bachelor program in management in a situation where the final school examinations of all other graduates from schools are also excellent? How does your effort in a promotion tournament for a senior consultant position change if the work outcomes depend on luck rather than effort?
Course code
MGMT501
Course type
MSc Course
Weekly Hours
2,5
ECTS
5.0
Term
HS 2021
Language
Englisch
Lecturers
Prof. Dr. Peter-J. Jost
Please note that exchange students obtain a higher number of credits in the BSc-program at WHU than listed here. For further information please contact directly the International Relations Office.
In the centre of our discussion in this course are multi-person decision making situation in which the outcomes depend on your action and on the actions of others. In Game Theory such a situation is called a game and the actors in such a game are called players, and a player has the move if he is called to act. To classify the variety of games it is useful to consider the following two basic criteria:
  1. Timing of moves: According to the timing of the players' moves, games can either be simultaneous or sequential. In the first case, all players choose their actions without knowing how the others have acted or will act. Such games are called simultaneous-move games. In the second case, at least one of the players knows when acting what another has done before. Such a game is called a sequential-move game.
  2. Degree of private information: Private information arises in those situations in which at least one player knows more about the decision making situation than another player. If this is the case, the game is one of incomplete information. Otherwise, the game is said to be of complete information.

Given these two dimensions, we discuss the following four classes of games in our course: Simultaneous-move Games of Complete Information, Sequential-move Games of Complete Information, Simultaneous-move Games of Incomplete Information, and Sequential-move Games of Incomplete Information.

Date Time
Thursday, 02.09.2021 09:45 - 15:15
Thursday, 09.09.2021 09:45 - 15:15
Tuesday, 14.09.2021 09:45 - 13:00
Tuesday, 14.09.2021 13:45 - 15:15
Wednesday, 06.10.2021 09:45 - 15:15
Monday, 11.10.2021 09:45 - 15:15
By the end of the course, students will advance their knowledge in different ways:
  • Learning the concepts of game theory will help you to understand the basic drivers of interactive behaviour and be helpful for your master thesis
  • Learning to create value through team work will be useful for other group works and cases
  • Learning to apply game theoretical basics to practical economic issues and real-world scenarios will improve your critical thinking in other courses
  • Learning to structure a problem in own words, but also using mathematics will be useful for your university and business career
  • Asking the right questions or detecting inconsistencies in discussions improves your communication skills
Jost, Weitzel: Strategic Conflict Management, 2007, Edward Elgar. Gibbons: A Primer In Game Theory, Princeton University Press, 1992.
Lecture

Assignments

Presentation

Group assignments: 50%

Individual assignments: 30%

Presentation of individual and group assignments: 20%

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