The first part of the course provides a conceptual framework to analyse the interaction among different economic agents. It covers the main concepts in game theory and various applications to oligopolies, bargaining, bank runs, and institutions for dispute resolution. Other topics include: static games of complete information, dynamic games of complete and perfect information, static games of incomplete information and dynamic games of incomplete information.
The second part of the course discusses incentives in organisations. It covers the main concepts in principal agent theory with applications to the theory of the firm, regulation, monopoly pricing, financial contracts, labour contracts, vertical relationships and agrarian contracts.