Economics and Game Theory

Students of this three-week course will cover principles of micro- and macro-economics, and receive an introduction to game theory. We will also cover the basics of different types of economic modelling, and their applications for economic policy and social science. The goal? To demystify neoclassical economic theories and to give clearer insight into this important field that influences the social and behavioural sciences in diverse ways.

The course is divided into three blocks. In the first block students become familiar with the main tenants of microeconomics: how markets work, and why they fail, as well as economics of the public sector and labour markets. The second block introduces the participants to macroeconomics and gives an understanding of the economy in the long run. Students will learn about: money and prices, the real economy,  data for macroeconomic indicators, and problems associated with the data quality for economics. Finally, in the third block, students are introduced to game theory and its application. We will focus on the Prisoners’ Dilemma in a static and a dynamic setting and introduce the basics of the Nash equilibrium as practical means to understanding game theory. Students will learn why economic cooperation is difficult to achieve and what role repeated interaction and valuation of the future plays in stimulating cooperation.

By the end of the programme, students will be able to understand how government policy stimulates market interactions, how financial markets operate, what determines growth of prosperity and the role of central banks.  Participants will become familiar with game theory and its application for international trade, competition policy, and issues related to public goods. Participants, upon completion of the course, will be able to engage in debates on economic policy and its implications.