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2014/2015  KAN-CJURO1074U  Advanced Game Theory and Applied Econometrics

English Title
Advanced Game Theory and Applied Econometrics

Course information
Language English
Course ECTS 7.5 ECTS
Type Mandatory
Level Full Degree Master
Duration One Semester
Course period Autumn
Timetable Course schedule will be posted at calendar.cbs.dk
Study board
Study Board for BSc/MSc in Business Administration and Commercial Law, MSc
Course coordinator
  • Veronica Grembi - Law Department (LAW)
Main academic disciplines
  • Business Law
  • Economics, macro economics and managerial economics
Last updated on 30-06-2014
Learning objectives
The students should acquire skills in:
  • acquiring a deeper knowledge of game theory
  • using game theoretic concepts to analyze legal institutions
  • understanding how legal institutions provide incentives for business decisions
  • understanding empirical applications of game theory
Course prerequisites
Bachelor in law or economics
Examination
Advanced Game Theory and Applied Econometrics:
Exam ECTS 7,5
Examination form Written sit-in exam
Individual or group exam Individual
Assignment type Written assignment
Duration 4 hours
Grading scale 7-step scale
Examiner(s) Internal examiner and external examiner
Exam period Winter Term
Aids allowed to bring to the exam Limited aids, see the list below and the exam plan/guidelines for further information:
  • Allowed calculators
Make-up exam/re-exam
Same examination form as the ordinary exam
If the number of registered candidates for the make-up examination/re-take examination warrants that it may most appropriately be held as an oral examination, the programme office will inform the students that the make-up examination/re-take examination will be held as an oral examination instead.
Course content and structure
The course is mainly built around game theory and its applications to legal institutions. First, we will go deeper in a set of topics related to cooperative and not cooperative behaviors as analyzed and formalized by the game theory literature. Second, we will deal with empirical analysis of game theory models.
The course will shed lights on how strategic considerations and quantitative methods complement each other in business decisions.
Teaching methods
Lectures with use of clickers to solve exercises and stimulate active participation to each lecture
Student workload
Lectures 32 hours
Preparation 140 hours
Exam preparation 34 hours
Further Information
Students are required to have a proper knowledge of the concepts in Chapters 1-5, 7, 11, 14-15, 19, 22, 26-27 of Dutta, Strategies and Games: Theory and Practice (The MIT Press, 1999). A basic knowledge of game theory is an essential requirement to be able to deal with a course of Advanced Game Theory.

Students are required to know how to calculate the expected value.
Expected literature
1. Baird, D. G., Gertner, R. H., and R. Picker, Game theory and the Law, Harvard University Press, 1994 (ONLY chapters 6, 7, and 8)
2. Ellickson R., Order Without Law. How Neighbours Settle Disputes, 1991
(ONLY part II, pp.127-258)
3. Bernstein L., Opting Out of the Legal System: Extralegal Contractual Relations in the Diamond Industry, Journal of Legal Study, vol.21, pp.115-157, 1992
4. Ashenfelter, O., Bloom, D. E., and G. Dahl, Lawyers as Agents of the Devil in a Prisoner’s Dilemma Game, Journal of Empirical Legal Studies, vol.10, pp.399-423, 2013
5. Dal Bo’, P. and G. R. Frechette, The Evolution of Cooperation in Infinitely Repeated Games: Experimental Evidence, American Economic Review, vol.101, 2011, 411-429
6. La Ferrara, E., Kin Groups and Reciprocity: A Model of Credit Transactions in Ghana, American Economic Review, 2003, vol. 93, pp. 1730-1751
7. Garoupa, N. and F. Gomez-Pomar, Cashing by the Hour: Why Large Law Firms Prefer Hourly Fees over Contingent Fees, Journal of Law, Economics, and Organization, vol.24, pp. 458-475
Last updated on 30-06-2014