Economic principles

Competences: This course aims to familiarize students with the tools leading the student to: - Understand the main concepts of game theory. - Create a coherent and logical framework to analyze cooperative and conflictive situations. - Learn how to use the tools that game theory provides to analyze economic situations in which there are strategic interactions among agents. - Apply this theory to many economics problems in the subjects of industrial organization, regulation, public economics, political economics, etc. Capacities: Game theory helps the student to learn how to: - Formalize economic problems. - Identify the proper model for the analysis of different situations of conflict. - Use game theory concepts for strategic analysis. Attitudes: The subject encourage the students to: - Analyze economic problems without prejudice, with precision and rigor. - Reason critically. - Learn autonomously. - Defend their point of view and evaluate the basis of other contrasting points of view.

LEARNING OUTCOMES 1.Possess advanced knowledge and skills in Political Science, both related to theoretical issues and of a practical or methodological nature. 2.Will be able to collect data, produce information and use it to base their reflections and judgements on social and political reality. 3.Will be able to apply the skills and knowledge acquired to solve problems in complex situations and in academic or professional work environments that require creative or innovative ideas. 5.You will be able to identify your training needs in your field of study and work or professional environment and will be able to organise your learning autonomously and independently of the type of context. BASIC COMPETENCES 2.Students are able to apply their knowledge to their work or vocation in a professional manner and possess the competences usually demonstrated through the development and defence of arguments and problem solving within their field of study. 3.Students have the ability to gather and interpret relevant data (usually within their field of study) in order to make judgements which include reflection on relevant social, scientific or ethical issues. 5.Students will have developed the learning skills necessary to undertake further study with a high degree of autonomy. GENERAL COMPETENCES 3.To be able to study the social and political reality using the scientific method, from a critical perspective and recognizing the variety of theoretical and methodological approaches of the different subdisciplines and specialities in Political Science. 5.To be able to communicate effectively and produce and defend, both orally and written, wellbuilt arguments within the field of Political Science. SPECIFIC COMPETENCES 3.To know the structure and functioning of political institutions and their interrelation with the remaining components of the political system 4.To analyse political actors behaviour, political participation¿s processes and the role of citizens in contemporary democracies 13.To know how to analyze public policies as well as how to design, plan, implement and evaluate public programs and projects 16.To know the most important theoretical contributions and the principles that guide scientific research in the field of Social Sciences; and to know how to apply statistical methods and research techniques to produce, collect, analyze and interpret both quantitative and qualitative data.

The problem of interaction among many agents and its impact on decision making is presented. There is an introduction to the basic concepts of game theory and to the different types of games depending on the nature of interaction (static, dynamic or repeated) as well as on the type of information agents have (perfect or imperfect). The main equilibrium concepts are studied (Nash equilibrium, sub game perfect equilibrium and dominated strategies) with applications to social sciences in general and political science in particular: noncompetitive markets, political competition, bilateral bargaining, voting systems, social cooperation, government coalitions and public good provision, among others. Program: 1. Introduction. 2. Static games: definition, dominated strategies, Nash equilibrium, voting systems, applications. 3. Dynamic games: definition, subgame perfect Nash equilibrium, credibility, voting systems, applications. 4. Bargaining: definition, patience, risk aversion, Coase theorem. Cases. 5. Repeated games: definition, cooperation in non-cooperative environments. Cases. 6. Power indices: definition, computation, applications to Spanish parliaments.

Acquisition of theoretical and applied knowledge through master classes, problems solving and discussion of case studies. These case studies will be taken from current issues (auctions in telecommunications, price collusion, wage bargaining) and they will allow to apply the studied tools to real problems. In addition the students must solve exercises on their own. The learning and teaching methodology include three fields according to the key capacities students must acquire: 1) The student must develop a proper theoretical knowledge through master classes and problem solving so as to be able to model a strategic interaction as a game and to apply equilibrium concepts. 2) Acquisition of technical abilities through problems solving and the discussion of solutions in class. This methodology will develop the following competences: Apply the acquired knowledge to new situations and to obtain autonomously predictions on agents behavior. 3) Acquisition of solving abilities and skills to identify problems through the analysis of case studies. This methodology will develop the following competences: Apply the models to new situations, develop analysis and synthesis capabilities putting emphasis on improving the abilities and skills related to decision making, to defend a point of view keeping critical attitude on classmates proposals.