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2020/2021  BA-BHAAV6039U  Economic and Game Theoretic Policy Analysis

English Title
Economic and Game Theoretic Policy Analysis

Course information

Language English
Course ECTS 7.5 ECTS
Type Elective
Level Bachelor
Duration One Semester
Start time of the course Autumn
Timetable Course schedule will be posted at calendar.cbs.dk
Max. participants 60
Study board
Study Board for BSc in Economics and Business Administration
Course coordinator
  • Karol Szwagrzak - Department of Economics (ECON)
Main academic disciplines
  • Political Science
  • Strategy
  • Economics
Teaching methods
  • Blended learning
Last updated on 27-08-2020

Relevant links

Learning objectives
  • Understand normative theories regarding the goals of public and organizational policies
  • Formulate and apply economic and game theoretic concepts to model and understand the design and implementation of policies and interventions
  • Identify appropriate theories to analyze policy making problems
  • Explain how empirical or case studies relate to theoretical models
Course prerequisites
Microeconomics and calculus. Familiarity with basic game theory is helpful.
Economic and Game Theoretic Policy Analysis:
Exam ECTS 7,5
Examination form Home assignment - written product
Individual or group exam Individual exam
Size of written product Please see text below
The exam is held as a 8-hour written home assignment.
There is no limit on the size of the written product. The students have 8 hours at their disposal.
Assignment type Written assignment
Duration Written product to be submitted on specified date and time.
Grading scale 7-point grading scale
Examiner(s) One internal examiner
Exam period Winter
Make-up exam/re-exam
Same examination form as the ordinary exam
Course content, structure and pedagogical approach

The course uses economic and game theoretic tools to introduce business and social science students to the policymaking process. By developing general principles for thinking about strategy and policymaking, the lessons of the course can be applied across a wide spectrum of problems where incentives in organizations matter. Examples include conflict resolution, the design of compensation schemes, counter-terrorism, regulation and tax compliance, and other strategic decision making problems.


The course starts by exploring the normative foundations of policymaking—political theory, social choice theory, and the Paretian and utilitarian theories about goals. It then introduces game theoretic models—externalities, coordination problems, and commitment problems—that uncover opportunities for policy to improve social welfare. Finally, it studies how the policy making process creates technological and incentive constraints that shape policy outcomes. Throughout, concepts and models are illustrated and reinforced with discussions of empirical evidence and case studies.

Description of the teaching methods
Lectures, exercises
Feedback during the teaching period
Exercises will be assigned every week. Solutions to exercises discussed in class are available to students giving them a chance to check their ability to solve relevant problems. Solutions to these other relevant exercises will also be provided.

The teacher might offer quizzes giving students a quick indication of their understanding of certain topics.
Student workload
Lectures 36 hours
Exam 8 hours
Preparation 166 hours
Expected literature

Political Economy for Public Policy (2016) by Ethan Bueno de Mesquita, Princeton University Press

Last updated on 27-08-2020