This course introduces the basic concepts of Game Theory and shows how they can be applied to analyze a wide range of topics in all areas of Business Studies. By the end of the course, students should be able to i) apply game-theoretical tools to think rigorously about problems in which there is strategic interaction (almost any interesting problem fits this description); ii) understand the models of strategic interaction published in the leading academic journals across fields; and iii) be able to build their own models to analyze strategic interaction problems of interest.
Although we will study many applications of our game theoretical tools, the emphasis in the course will be placed on how to apply those tools to study problems of interest, and not so much on the individual applications. However, along the way we will study the building blocks of Industrial Organization (and the economic analysis of Strategy) and Agency Theory (and, thus, of Corporate Finance, Organizational Economics, and Personnel Economics). Time permitting, we will also analyze applications in Accounting and Marketing.