This course is a survey of the main ideas and techniques of game-theoretic analysis related to business decisions. As such, the course emphasizes the identification and analysis of archetypal strategic situations frequently occurring in business situations. The course has a strong experiential component. Students will repeatedly participate in a variety of strategic situations thereby developing the ability to translate their analyses into practice. A working knowledge of basic calculus and ease with algebraic manipulation are prerequisites of the course. Prior exposure to microeconomics is very helpful.

The goals of the course to provide students with a foundation to: (1) Apply game-theoretic analysis, both formally and intuitively, to business decisions. (2) Recognize and assess archetypal strategic situations in complicated business settings.

* Regular Attendance in Class If you cannot attend for any reason, I ask that you contact the TA and let him know. * Participation Much of the learning in the class comes from your active contribution, so reading and thinking before class and actively conversing during class are key ingredients to a successful learning experience. In order to be prepared to participate effectively, you should read carefully the in-class exercises prior to coming to class. Reading should be active: as you read, think about your strategy and what assumptions you are making in deciding on this strategy. Also try to think about how others in the class might develop their strategies. You should be prepared to defend your actions in the class using logic, evidence and calculation. * Problem Sets To help you to gain ease in applying the tools of game theoretic analysis to the situations you will participate in during the class, there will be almost weekly problem sets and reflection essays. The combination of attendance, participation, and problem sets count for 40% of the course grade. * Final Project (50%) The final project is the "capstone" component to the class. You need to find an issue or situation of strategic relevance where you can bring to bear a variety of ideas and techniques developed during the course. You are free to work alone or work in groups. Every group should contain no more than 4 people. If you form a group with more than 2 people, at the end of the course you also have to fill out a confidential peer-review form in which you evaluate the contributions made by other team members in the final project. 40% of your grade for the final project is determined by a 10-to-15-minute oral presentation on 6/10. The remaining 60% of your grade for the project is determined by a 10-to-20-page write-up of your analysis. The page limit is based on a double-spaced paper exclusive of any tables or exhibits you wish to include. * Midterm Proposal (10%) No later than 5/20 you have to submit a 2-4 page midterm proposal for your final project. In the proposal you need to explain the specific topic you plan to work on in your final project. Each group only needs to submit one copy of the proposal. If your proposed topic is not relevant or appropriate to be a final project, I will discuss it with you and, in that case, you may need to change a topic or revise your proposal.

The Art of Strategy: A Game Theorist's Guide to Success in Business and Life by Avinash K. Dixit and Barry J. Nalebuff Game-Changer: Game Theory and the Art of Transforming Strategic Situations by David McAdams Co-Opetition by Adam M. Brandenburger and Barry J. Nalebuff Matchmakers: The New Economics of Multisided Platforms by David S. Evans and Richard Schmalensee