Programme And Module Handbook
 
Course Details in 2022/23 Session


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Module Title LH Decision Theory and Games
SchoolBirmingham Business School
Department Birmingham Business School
Module Code 07 33152
Module Lead TBC
Level Honours Level
Credits 20
Semester Semester 2
Pre-requisites LI Microeconomics - (08 28536)
Co-requisites
Restrictions None
Contact Hours Lecture-40 hours
Guided independent study-160 hours
Total: 200 hours
Exclusions
Description This module examines the principles and algorithms for making individual decisions and strategic decisions, and provides students with advanced knowledge and analytical skills associated with decision theory and game theory and its economic applications. The purpose of the module is to develop the solid theoretical background necessary to understand the theoretic models and how and why these models were developed and how these models are applied as a tool to solve problems in different areas in economics. The main emphasis is not only on theoretical analysis of abstract decision problems, but also on the discussion and description of solution concepts appropriate for various types of practical economic problems. Decision theories discussed in the module will include Expected Utility Theory as well as a range of the most important alternatives such as Cumulative Prospect Theory. The Decision Theory part of this module will discuss decisions under risk and decisions under ambiguity/uncertainty. The Games part of this module will cover cooperative and non-cooperative games in normal and extensive form as well as game-theoretic aspects of modelling herding behaviour, boundedly rational behaviour (e.g. the level-k model, the cognitive hierarchy model, etc.) and markets (e.g. auctions and market entry games).
Learning Outcomes By the end of the module students should be able to:
  • demonstrate systematic knowledge and understanding in individual decision theory and game theory;
  • assess different theoretical accounts of individual and strategic decision making;
  • apply individual decision theory and game theory to formulate and solve complex practical problems;
  • critically evaluate theoretical constructs and practical applications of individual decision theory and game theory.
Assessment
Assessment Methods & Exceptions Assessment:
1-hour class test (25%);
1000-word essay (25%);
Individual project: 3 minute video or a 2,500 word essay (50%)

Reassessment: N/A
Other
Reading List