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2024/2025  KAN-CDSCV1002U  Game Theory for Business and Data-driven Decision Making

English Title
Game Theory for Business and Data-driven Decision Making

Course information
Language English
Course ECTS 7.5 ECTS
Type Elective
Level Full Degree Master
Duration One Semester
Start time of the course Autumn
Timetable Course schedule will be posted at calendar.cbs.dk
Max. participants 60
Study board
Master of Science (MSc) in Business Administration and Data Science
Course coordinator
  • Rajani Singh - Department of Digitalisation (DIGI)
Main academic disciplines
  • Information technology
  • Statistics and quantitative methods
  • Economics
Teaching methods
  • Blended learning
Last updated on 25-01-2024

Relevant links
Learning objectives
To achieve the grade 12, students should meet the following learning objectives with no or only minor mistakes or errors:
  • Understand and model strategic behaviour in cooperative and non-cooperative situations.
  • Know various solution concepts and be able to find such solutions for cooperative and non-cooperative games.
  • Know the significance of the difference between games with perfect and imperfect information as well as the difference between games with complete information and with incomplete information.
  • Demonstrate the understanding of different types of games and their suitability to wide variety of business scenarios or societal phenomena.
  • Be able to model and apply game theory concepts in business and other real life applications.
  • Identify business and real-life situations in which game theory can add value.
  • Exhibit more profound knowledge and understanding of the topics as part of the project and the report should reflect on critical awareness of the methodological choices with written skills to accepted academic standards.
Course prerequisites
The course has no prerequisites except that the students should know the basic mathematics. Also, course requires an interest in and commitment to learn and acquire necessary skills to understand the concepts of game theory and hands-on exercises. However, no prior coding experience or knowledge about game theory is required.
Prerequisites for registering for the exam (activities during the teaching period)
Number of compulsory activities which must be approved (see section 13 of the Programme Regulations): 2
Compulsory home assignments
Each student has to get 2 out of 3 activities approved in order to qualify for the final exam.

There are three group reports of max. 5 pages written in groups of 2-4 students.

Each team will be provided with written feedback on the reports.

Each report forms the foundation of a part of the final report. This ensures the students will understand the expectations of the final before submission.

There will not be any extra attempts provided to the students before the ordinary exam. If a student cannot participate in the compulsory activities due to documented illness, or if a student does not have the activities approved in spite of making a real attempt, then the student will be given one extra attempt before the re-exam: one home assignment (max.10 pages) which will cover 2 mandatory activities.
Examination
Game Theory for Business and Data-driven Decision Making:
Exam ECTS 7,5
Examination form Oral exam based on written product

In order to participate in the oral exam, the written product must be handed in before the oral exam; by the set deadline. The grade is based on an overall assessment of the written product and the individual oral performance, see also the rules about examination forms in the programme regulations.
Individual or group exam Individual oral exam based on written group product
Number of people in the group 2-4
Size of written product Max. 15 pages
Assignment type Project
Release of assignment Subject chosen by students themselves, see guidelines if any
Duration
Written product to be submitted on specified date and time.
20 min. per student, including examiners' discussion of grade, and informing plus explaining the grade
Grading scale 7-point grading scale
Examiner(s) Internal examiner and second internal examiner
Exam period Winter
Make-up exam/re-exam
Same examination form as the ordinary exam
Description of the exam procedure

In order to participate in the oral exam, the written product must be handed in before the oral exam; by the set deadline. The grade is based on an overall assessment of the written product and also the individual oral performance, covering the topics of the course.
Course content, structure and pedagogical approach

Game theory has applications in numerous fields, such as computer science, economics, social science and political science. Game theory is also now finding its applications in data-driven decision-making. Many business decisions can be modelled and analysed using game theory.

 

This course aims to provide a basic understanding of various game-theoretic concepts and their application in different application areas. In this course, basic tools of game theoretic analysis will be introduced, and we will outline some of the applications of game theory, primarily in business and economics domains, such as market competition, auctions, and bargaining. We will also cover some advanced applications such as game theory for Artificial Intelligence, Sustainable business, Climate change etc.

 

The course will cover different types of games as listed below:

  • Non-cooperative and Cooperative games
  • Simultaneous and Sequential move games
  • Strategic or Normal form games
  • Extensive form games
  • Zero-Sum and Non-Zero-Sum games
  • Perfect and Imperfect Information games
  • Complete and Incomplete information games.

 

All the games will be covered with practical examples and their applicability to different scenarios.

 
Description of the teaching methods
The class is a mixture of recorded lectures, other online activities, face to face lecture/discussion sessions, and practical exercises in a hands-on session.

The lectures will be combined with some pragmatic hands-on exercises using various software tools such as GAMBIT, Game Theory Explorer (GTE) etc. for game theory.

For some of the lectures, additional lecture notes will be provided by the teacher.
Feedback during the teaching period
As part of the mandatory assignment, students will have to submit reports of max. 5 pages written in groups of 2-4 students. Each group will get feedback on the written product. In addition to that there will be hands-on exercise as part of exercises session in the classroom.

Students periodically are presented with online quizzes where they receive automatic feedback on their responses.

The instructor also has weekly office hours where the students can get feedback of various forms, including followup on their weekly activity sessions, clarification and discussion of weekly readings and lectures, and discussion of plans for course project.

Students receive feedback on their plans for final project.
Student workload
Lectures 20 hours
Exercises 20 hours
Prepare to class 80 hours
Project work and report 76 hours
Exam and prepare 10 hours
Total 206 hours
Expected literature

 

The literature will be shared via Canvas before the semester starts. Students are advised to check the syllabus on Canvas before buying any material.


Teaching Materials:

Books and Scientific Articles
Lecture slides
Readings
Handouts

Hand-on exercises

 

 

Some suggested text books and research articles for reference:

 

  • Osborne, M. J., Rubinstein, Ariel., & Osborne, M. J. (1994). A course in game theory. MIT Press.
  • Leyton-Brown, K., Shoham, Y. (2022). Essentials of Game Theory: A Concise Multidisciplinary Introduction. Switzerland: Springer International Publishing.
  • Narahari, Y. (2014). Game theory and mechanism design. World Scientific Publishing Co. Pte. Ltd.
  • Brickley, J., Smith, C., & Zimmerman, J. (2000). AN INTRODUCTION TO GAME THEORY AND BUSINESS STRATEGY. Journal of Applied Corporate Finance, 13(2), 84–98. https:/​/​doi.org/​10.1111/​j.1745-6622.2000.tb00056.x
  • Powell, J. H. (2003). Game Theory in Strategy. In Game Theory in Strategy.
  • Erhun, F., & Keskinocak, P. (2003). Game theory in business applications. Management Science and Engineering, Stanford University, Stanford.
  • Jackson, M. O. (2011). A brief introduction to the basics of game theory. Available at SSRN 1968579.

 
Last updated on 25-01-2024