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Unit of study_

ECON6025: Strategic Decision Making

Decision makers face two types of uncertainty: uncertainty about the state of nature (how much oil is in an oilfield) and uncertainty about the strategic behaviour of other decision makers (how many oil wells they will drill). This unit of study focuses on strategic uncertainty and the uses decision makers can make of the concepts of game theory to guide their decisions. Game theory studies situations where a) agents have conflicts of interests and b) agents can take actions that directly affect their payoffs and the payoffs of others. A very broad range of applications from business and economics fit the above description and therefore can be studied by the methods of game theory. Applications include, firm pricing and output decisions, market entry and exit, hold-up, collusion, bargaining, auctions, and signalling.

Details

Academic unit Economics
Unit code ECON6025
Unit name Strategic Decision Making
Session, year
? 
Semester 2, 2022
Attendance mode Normal day
Location Remote
Credit points 6

Enrolment rules

Prohibitions
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None
Prerequisites
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ECON6001 or ECOF6080 or ECON6701
Corequisites
? 
None
Available to study abroad and exchange students

Yes

Teaching staff and contact details

Coordinator Anastasia Burkovskaya, anastasia.burkovskaya@sydney.edu.au
Type Description Weight Due Length
Final exam (Open book) Type C final exam Final exam
Online exam
40% Formal exam period 2 hours
Outcomes assessed: LO1 LO5 LO4 LO3 LO2
Online task Peer review
Peer review of assigned group projects
5% STUVAC
Due date: 11 Nov 2022 at 23:00
Take-home
Outcomes assessed: LO1 LO2 LO4 LO5
In-semester test (Open book) Type C in-semester exam Mid-term exam
Online exam
30% Week 08
Due date: 23 Sep 2022 at 18:00
1.5 hours
Outcomes assessed: LO1 LO5 LO4 LO3 LO2
Presentation group assignment Video clip
Group project to make a video about an assigned academic paper
15% Week 13
Due date: 04 Nov 2022 at 18:00
Take-home
Outcomes assessed: LO1 LO5 LO4 LO2
Online task Homework and lab participation
Weekly participation in lab activities and homework
10% Weekly Take-home
Outcomes assessed: LO1 LO2 LO3 LO4 LO5
group assignment = group assignment ?
Type C final exam = Type C final exam ?
Type C in-semester exam = Type C in-semester exam ?
  • Group project: Each group of 2-4 students will be assigned an academic paper to analyze and make a video. The mark will depend on the quality of understanding of the academic material and clarity of the presentation.
  • Mid-semester exam: open-book exam covering material from lectures 1 to 6. It will consist of analytical problems.
  • Final exam: open-book exam during the formal exam period. This exam will consist of analytical problems. It will cover lectures 7 to 12.
  • Lab participation and homework: students earn up to 10% in weekly online activities.
  • Peer review: each student will be assigned several videos of the other groups for peer review.

Detailed information for each assessment can be found on Canvas.

Assessment criteria

The University awards common result grades, set out in the Coursework Policy 2014 (Schedule 1).

As a general guide, a High distinction indicates work of an exceptional standard, a Distinction a very high standard, a credit a good standard, and a pass an acceptable standard.

Result name

Mark range

Description

High distinction

85 - 100

 

Distinction

75 - 84

 

Credit

65 - 74

 

Pass

50 - 64

 

Fail

0 - 49

When you don’t meet the learning outcomes of the unit to a satisfactory standard.

 

For more information see sydney.edu.au/students/guide-to-grades

Late submission

In accordance with University policy, these penalties apply when written work is submitted after 11:59pm on the due date:

  • Deduction of 5% of the maximum mark for each calendar day after the due date.
  • After ten calendar days late, a mark of zero will be awarded.

This unit has an exception to the standard University policy or supplementary information has been provided by the unit coordinator. This information is displayed below:

No late submissions will be accepted.

Special consideration

If you experience short-term circumstances beyond your control, such as illness, injury or misadventure or if you have essential commitments which impact your preparation or performance in an assessment, you may be eligible for special consideration or special arrangements.

Academic integrity

The Current Student website provides information on academic honesty, academic dishonesty, and the resources available to all students.

The University expects students and staff to act ethically and honestly and will treat all allegations of academic dishonesty or plagiarism seriously.

We use similarity detection software to detect potential instances of plagiarism or other forms of academic dishonesty. If such matches indicate evidence of plagiarism or other forms of dishonesty, your teacher is required to report your work for further investigation.

WK Topic Learning activity Learning outcomes
Week 01 Strategic environments Lecture and tutorial (3 hr) LO1
Week 02 Static games with complete information: dominance, rationalisability, best response, pure strategy NE Lecture and tutorial (3 hr) LO1 LO2 LO3 LO4 LO5
Week 03 Static games with complete information: mixed strategies, refinements of NE Lecture and tutorial (3 hr) LO1 LO2 LO3 LO4 LO5
Week 04 Static games with asymmetric information (Bayesian games): discrete strategies Lecture and tutorial (3 hr) LO1 LO2 LO3 LO4 LO5
Week 05 Static games with asymmetric information and continuous strategies: Auctions Lecture and tutorial (3 hr) LO1 LO2 LO3 LO4 LO5
Week 06 Static games with asymmetric information: continuous strategies (continued). Dynamic games with complete information: subgame perfection. Lecture and tutorial (3 hr) LO1 LO2 LO3 LO4 LO5
Week 07 Dynamic games equilibrium refinements: weak perfect Bayesian and sequential equilibria. Lecture and tutorial (3 hr) LO1 LO2 LO4
Week 08 Midterm Individual study (2 hr)  
Week 09 Applications of dynamic games with incomplete information Lecture and tutorial (3 hr) LO1 LO2 LO3 LO4 LO5
Week 10 Applications of dynamic games with incomplete information Lecture and tutorial (3 hr) LO1 LO2 LO3 LO4
Week 11 Repeated games Lecture and tutorial (3 hr) LO1 LO2 LO3 LO4 LO5
Week 12 Cooperative game theory Lecture and tutorial (3 hr) LO1 LO2 LO3 LO4 LO5
Week 13 Group assessment peer-review Online class (3 hr) LO1 LO2 LO4

Attendance and class requirements

  • Attendance: According to Faculty Board Resolutions, students in the Faculty of Arts and Social Sciences are expected to attend 90% of their classes. If you attend less than 50% of classes, regardless of the reasons, you may be referred to the Examiner’s Board. The Examiner’s Board will decide whether you should pass or fail the unit of study if your attendance falls below this threshold.
  • Lecture recording: All lectures will be available in the form of pre-recorded lectures.
  • Preparation: Students should commit to spend approximately three hours’ preparation time (reading, studying, homework, essays, etc.) for every hour of scheduled instruction.

Study commitment

Typically, there is a minimum expectation of 1.5-2 hours of student effort per week per credit point for units of study offered over a full semester. For a 6 credit point unit, this equates to roughly 120-150 hours of student effort in total.

Required readings

The lectures do not rely on any particular textbook. Lecture notes will be provided. Useful readings for this unit can be accessed on the Library eReserve link available on Canvas.

Recommended reading:

  • Martin J. Osborne (2004): An Introduction to Game Theory, Oxford University Press. 
  • Roger B. Myerson (1991): Game Theory: Analysis of Conflict, Harvard University Press.
  • Robert Gibbons: Game theory for applied economists.

Learning outcomes are what students know, understand and are able to do on completion of a unit of study. They are aligned with the University’s graduate qualities and are assessed as part of the curriculum.

At the completion of this unit, you should be able to:

  • LO1. demonstrate familiarity with the main approaches and concepts of Game Theory
  • LO2. identify the likely outcome arising from the interaction of strategic players
  • LO3. recognize “real world” economic situations that can be studied by game theory, be able to model them as games, and predict the likely outcomes
  • LO4. understand the limitations of various models, distinguish between competing explanations, and critically evaluate competing theories
  • LO5. participate in public policy discussions arising in business and government environments.

Graduate qualities

The graduate qualities are the qualities and skills that all University of Sydney graduates must demonstrate on successful completion of an award course. As a future Sydney graduate, the set of qualities have been designed to equip you for the contemporary world.

GQ1 Depth of disciplinary expertise

Deep disciplinary expertise is the ability to integrate and rigorously apply knowledge, understanding and skills of a recognised discipline defined by scholarly activity, as well as familiarity with evolving practice of the discipline.

GQ2 Critical thinking and problem solving

Critical thinking and problem solving are the questioning of ideas, evidence and assumptions in order to propose and evaluate hypotheses or alternative arguments before formulating a conclusion or a solution to an identified problem.

GQ3 Oral and written communication

Effective communication, in both oral and written form, is the clear exchange of meaning in a manner that is appropriate to audience and context.

GQ4 Information and digital literacy

Information and digital literacy is the ability to locate, interpret, evaluate, manage, adapt, integrate, create and convey information using appropriate resources, tools and strategies.

GQ5 Inventiveness

Generating novel ideas and solutions.

GQ6 Cultural competence

Cultural Competence is the ability to actively, ethically, respectfully, and successfully engage across and between cultures. In the Australian context, this includes and celebrates Aboriginal and Torres Strait Islander cultures, knowledge systems, and a mature understanding of contemporary issues.

GQ7 Interdisciplinary effectiveness

Interdisciplinary effectiveness is the integration and synthesis of multiple viewpoints and practices, working effectively across disciplinary boundaries.

GQ8 Integrated professional, ethical, and personal identity

An integrated professional, ethical and personal identity is understanding the interaction between one’s personal and professional selves in an ethical context.

GQ9 Influence

Engaging others in a process, idea or vision.

Outcome map

Learning outcomes Graduate qualities
GQ1 GQ2 GQ3 GQ4 GQ5 GQ6 GQ7 GQ8 GQ9
No changes have been made since this unit was last offered

Disclaimer

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