## Strategic Game Theory for Managers

The subject, Strategic Game Theory for Managers, is an elective subject on the full-time MBA at the AGSM.The overheads for Term 3, 2003, are available below. Note that there is little overlap with the material taught in Chongwoo's Strategic Thinking (Term 1, 2003), but familiarity with that material will be assumed.

Revised2003 Course Outline and Assessment

2003 Readings PackageLectures:

- Lecture 1 ---
1. Strategic Decision Making- Lecture 1a ------- Rothschild's payoffs.
- Lecture 2 ------- Strategic Interactions.
- Lecture 3 ------- The Duopoly Game.
- Lecture 4 ------- Yet More Strategic Interactions.
- Lecture 5 ---
2. Decision Analysis: Games Against Nature- Lecture 6 ------- Evaluation.
- Lecture 7 ------- Gaining Insight
- Lecture 8 ------- Utility
- Lecture 9 ---
6. Unpredictability- Lecture 10 --
7. Bargaining- Lecture 11 --
8. Using Information Strategically- Lecture 12 ------ Screening, Signalling.
- Lecture 13 --
9. Bidding and Auction Design- Lecture 14 ------ Olympics.
- Lecture 15 --
10. Contracting, or the Rules of the Game- Lecture 16 ------ Employing, Financing, Franchising.
- Lecture 17 --
11. Choosing the Right Game: Co-opetition- Lecture 18 ------ Concluded.

The Term Project:For an exercise on different payoffs and hidden information: Solomon's judgement.

For guidelines on evaluation of the project, Look here.

For Notes on Writing and the maximum length of the project, Look here.

Exercises:

- The two-thirds exercise 1, Term 3 2003.
- The two-thirds exercise 1, Term 1 2003.
- The two-thirds exercise 1, 2002.
- The two-thirds exercise 1, 2001.
- The two-thirds exercise 2, 2001.

- Case: Nuptials
- Case: Pennzoil
- Bargaining exercises
- Contracts
- Card games
Links to Other Web Sites:

- Russell Crowe is John Nash in
A Beautiful Mind- Sylvia Nasar, author of John Nash's biography, the book that became the movie, talks about Nash at M.I.T., on 28 Oct 2002. Note: This streaming video is 75 minutes long.
- Ken Binmore talks about designing auctions in general and the 3G auctions in particular, 2000. A one-hour streaming video using RealOne Player.
- A piece about John Harsanyi, the Nobel laureate in game theory, and Sydney University graduate.
- Readings in Game Theory from the popular press. At www.gametheory.net/news.
- The original RAND corporation piece on competition and cooperation in the NASCAR races. A shorter summary at
Slateis here.- Read Alex Burns' account of Rupert Murdoch's use of game theory in his dealings over thirty years here.

DRIVE:

A growing glossary:

- The DRIVE Questionnaire
- Explanations of Speculators, Hedgers, Gamblers, Respondents, and Neutrals.
- Plot of the SGTM class 2003, Term 3.
- Plot of the SGTM class 2003, Term 1.
- Plot of the SGTM class 2002.
- Plots of the summer class 2001-02.
- Plots of recent class results,

One-Tel, Optus, and Telstra. Exercises A. Exercises B. The Pennzoil Case. Exercises F. Toys Galore Howe Properties

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Last Updated 19 May, 2003Robert Marks, bobm@agsm.edu.au