This course uses game theory to study strategic behavior in real-world situations. It develops theoretical concepts, such as incentives, strategies, threats and promises, and signaling, with application to a range of policy issues. Examples will be drawn from a wide variety of areas, such as competition, bargaining, auction design, and voting behavior. This course will also explore how people actually behave in strategic settings through a series of participatory demonstrations.
Students may receive credit for both API-303 and API-110 or API-112 only if API-303 is taken first. Students not meeting the API-101 prerequisite, but with an equivalent intermediate microeconomics background may apply to the instructor for permission to enroll.