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Module Catalogue

IB3H9-15 Strategic Games: Thinking rationally about business, policy and real life

Department
Warwick Business School
Level
Undergraduate Level 3
Module leader
Daniel Read
Credit value
15
Module duration
10 weeks
Assessment
25% coursework, 75% exam
Study location
University of Warwick main campus, Coventry

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Introductory description

N/A.

Module web page

Module aims

The principal module aims are:

  1. To develop students' theoretical and practical understanding of strategic decisions using tools drawn from economics, game theory, and psychology.
  2. To enable students to interpret social and psychological situations within this framework.
  3. To encourage students to take a broad view of policy decisions that have strategic implications, and to predict the consequences of those policies.

Outline syllabus

This is an indicative module outline only to give an indication of the sort of topics that may be covered. Actual sessions held may differ.

The syllabus will include such topics as:

  • Definition of strategic situation and equilibrium.
  • Backward induction and rollback equilibrium.
  • Strategic moves and the problem of credibility.
  • Nash equilibrium in pure and mixed strategies.
  • The prisoner's dilemma and the tragedy of the commons.
  • Asymmetric information and unravelling.
  • Screening and Signalling.
  • Matching games and the deferred acceptance algorithm.
  • Bargaining and negotiation.
  • Evolutionary games.
  • Auction theory and the winner's curse.
  • Intrapersonal game.

Learning outcomes

By the end of the module, students should be able to:

  • Understand and deploy the basic concepts of strategic thinking, in a largely nonmathematical way. These concepts include strategy, Nash equilibrium, prisoner's dilemma, backward induction, winner's curse, informational unravelling, and asymmetric information, costly signallying, and matching.
  • Demonstrate logical and critical thinking skills in being able to recognize the potentially counter-intuitive effects of strategic decisions.
  • Recognise the links between situations that differ widely in content but share common underlying strategic structures.
  • Distinguish between the outcome of logical analysis and 'psychological' analysis of strategic situations.
  • Discuss critically the strategic thinking underlying a broad range of decisions taken from all aspects of life.
  • Analyse strategic situations and act so as to achieve optimal outcomes, including negotiations with others, and even with your own future selves.

Indicative reading list

Some useful resources:
Dixit, A. K., Reilly, D. & Skeath, S. (2015). Games of Strategy. Norton. (Fourth edition, but any edition is good).
Schelling, T. (1976). Micromotives and Macrobehaviour. Norton.
Binmore, K. (2007). Game theory: A very short introduction. Oxford University Press.
Roth, A. E. (2015). Who Gets What—and Why: The New Economics of Matchmaking and Market Design. Houghton Mifflin Harcourt.

Subject specific skills

Distinguish between the mathematical and economic concept of the correct strategy, and the 'psychological' concept, meaning what might be the correct strategy given what others are likely to do.
Understand how strategic thinking can influence success in all aspects of life.

Transferable skills

Perspective taking.
Logical analysis.
Presentation skills and argumentation.

Study time

Type Required
Lectures 10 sessions of 2 hours (13%)
Tutorials 9 sessions of 1 hour (6%)
Private study 48 hours (32%)
Assessment 73 hours (49%)
Total 150 hours

Private study description

Private Study.

Costs

No further costs have been identified for this module.

You do not need to pass all assessment components to pass the module.

Assessment group D4
Weighting Study time Eligible for self-certification
Assessment component
Group Presentation Video (15 CATS) 25% 18 hours No
Reassessment component is the same
Assessment component
Online Examination 75% 55 hours No

Exam

~Platforms - AEP

  • Students may use a calculator
  • Graph paper
Reassessment component is the same
Feedback on assessment

Written feedback on the presentation will be provided, focusing on the key learning outcomes, as well as giving feedback on creativity and the general quality of the presentation.

Past exam papers for IB3H9

Courses

This module is Optional for:

  • Year 3 of UESA-HN11 BSc Engineering and Business Studies
  • UIBA-N20B BSc in Management
    • Year 3 of N20B Management
    • Year 3 of N20B Management
    • Year 3 of N23K Management with Accounting
    • Year 3 of N234 Management with Digital Business
    • Year 3 of N235 Management with Entrepreneurship
    • Year 3 of N232 Management with Finance
    • Year 3 of N252 Management with Marketing
    • Year 3 of N23L Management with Strategy and Organisation
  • UIBA-MN3C Law and Business Four Year (Qualifying Degree)
    • Year 3 of MN3C Law and Business Four Year (Qualifying Degree)
    • Year 4 of MN3C Law and Business Four Year (Qualifying Degree)
  • Year 3 of UIBA-N400 Undergraduate Accounting and Finance
  • Year 4 of UIBA-N403 Undergraduate Accounting and Finance (with Foundation Year)
  • UIBA-N401 Undergraduate Accounting and Finance (with Placement Year/Undergraduate Partnership Programme)
    • Year 4 of N401 Accounting and Finance (Placement)
    • Year 4 of N402 Accounting and Finance (Undergraduate Partnership Programme)
  • Year 3 of UCHA-FN11 Undergraduate Chemistry and Business Studies
  • Year 3 of UCSA-I1N1 Undergraduate Computer Science with Business Studies
  • Year 4 of UGEA-RN21 Undergraduate German and Business Studies
  • Year 3 of UIPA-L8N2 Undergraduate Global Sustainable Development and Business Studies (with Intercalated Year)
  • Year 4 of UIBA-N1RA Undergraduate International Business with French
  • Year 4 of UIBA-N1RB Undergraduate International Business with German
  • Year 4 of UIBA-N1RC Undergraduate International Business with Italian
  • Year 4 of UIBA-N1RD Undergraduate International Business with Spanish
  • UIBA-N20F Undergraduate International Management
    • Year 4 of N20F International Management
    • Year 4 of N20F International Management
    • Year 4 of N20S International Management (with Accounting)
    • Year 4 of N20T International Management (with Chinese)
    • Year 4 of N20P International Management (with Entrepreneurship)
    • Year 4 of N20M International Management (with Finance)
    • Year 4 of N20U International Management (with French)
    • Year 4 of N20L International Management (with Marketing)
    • Year 4 of N20V International Management (with Spanish)
    • Year 4 of N20W International Management (with Strategy and Organisation)
    • Year 4 of N20N International Management with Digital Business
    • Year 4 of N20E Management (with Foundation Year)
    • Year 4 of N234 Management with Digital Business
  • Year 3 of UIBA-MN3B Undergraduate Law and Business Studies
  • UIBA-MN3F Undergraduate Law and Business Studies (Qualifying Degree) with Intercalated Year
    • Year 3 of MN3F Law and Business Studies (Qualifying Degree) with Intercalated Year
    • Year 5 of MN3F Law and Business Studies (Qualifying Degree) with Intercalated Year
  • Year 4 of UIBA-MN3D Undergraduate Law and Business Studies with Intercalated Year (3+1)
  • UIBA-N20E Undergraduate Management (with Foundation Year)
    • Year 4 of N20E Management (with Foundation Year)
    • Year 4 of N23N Management with Accounting (with Foundation Year and Placement Year)
    • Year 4 of N23M Management with Accounting (with Foundation Year)
    • Year 4 of N23E Management with Digital Business (with Foundation Year)
    • Year 4 of N23F Management with Entrepreneurship (with Foundation Year)
    • Year 4 of N23D Management with Finance (with Foundation Year)
    • Year 4 of N252 Management with Marketing
    • Year 4 of N254 Management with Marketing (with Foundation Year)
    • Year 4 of N23P Management with Strategy and Organisation (with Foundation Year)
  • UIBA-N20C Undergraduate Management (with Placement Year/Undergraduate Partnership Programme)
    • Year 4 of N20M International Management (with Finance)
    • Year 4 of N20B Management
    • Year 4 of N20D Management (Undergraduate Partnership Programme)
    • Year 4 of N20C Management (with Placement Year)
    • Year 4 of N20Q Management with Accounting (with Placement Year)
    • Year 4 of N236 Management with Digital Business (with Placement Year)
    • Year 4 of N237 Management with Entrepreneurship (with Placement Year)
    • Year 4 of N232 Management with Finance
    • Year 4 of N233 Management with Finance (with Placement Year)
    • Year 4 of N253 Management with Marketing (with Placement Year)
    • Year 4 of N23L Management with Strategy and Organisation
    • Year 4 of N20R Management with Strategy and Organisation (with Placement Year)
  • Year 3 of UMAA-G1NC Undergraduate Mathematics and Business Studies
  • Year 3 of UMAA-G1N2 Undergraduate Mathematics and Business Studies (with Intercalated Year)
  • Year 3 of UPXA-F3N1 Undergraduate Physics and Business Studies
  • Year 3 of UPXA-F3ND Undergraduate Physics and Business Studies (with Intercalated Year)