COURSE UNIT TITLE

: GAME THEORY

Description of Individual Course Units

Course Unit Code Course Unit Title Type Of Course D U L ECTS
SIV 2008 GAME THEORY COMPULSORY 3 0 0 4

Offered By

Civil Aviation Transportation Management

Level of Course Unit

Short Cycle Programmes (Associate's Degree)

Course Coordinator

DOCTOR HAKAN SÖNMEZ

Offered to

Civil Aviation Transportation Management

Course Objective

The aim of this course is to understand what results can occur in situations where strategic relations affect the outcomes and to examine the thought system behind the reasons for these results, to provide an optimum solution of the business problems according to the information structure of the players and the type of the game.

Learning Outcomes of the Course Unit

1   Learn the basic concepts of game theory.
2   Classifies games according to certain criteria.
3   Learns the concepts of static, dynamic, repetitive and sequential game.
4   Uses games to solve possible problems in daily business life.
5   Uses decision making strategies effectively.

Mode of Delivery

Face -to- Face

Prerequisites and Co-requisites

None

Recomended Optional Programme Components

None

Course Contents

Week Subject Description
1 Introduction to game theory: Basic concepts of game theory, current applications of game theory.
2 Classification of games: Games by number of strategy, games by number of players, games by distribution of resources, meta games, games by the level of knowledge of the player, static and dynamic games.
3 Solution methods of two-person zero-sum games: Peak (balance, saddle) point approach, maximin and minimax approach.
4 Solution methods of two-person zero-sum games: Dominant (superior, dominant) strategy approach, mixed strategy approach.
5 Nash equilibrium approach, finding and interpreting Nash equilibrium, backward deduction and subgame perfect Nash equilibrium approach.
6 Prisoner's dilemma game, sex war and penalty shootout games, folk theorem and solution.
7 Mid-Term Exam.
8 Solution methods of two-person non-zero-sum games: Nash equilibrium approach, dominant (superior, dominant) strategy approach.
9 Solution methods of two-person non-zero-sum games: Mixed strategy approach, game (decision) tree approach.
10 Static and dynamic games with full knowledge, static and dynamic games with incomplete information, repeated games, expanding format games, sequential games, collaborative games and solution methods of these games according to various market structures.
11 Static and dynamic games with full knowledge, static and dynamic games with incomplete information, repeated games, expanding format games, sequential games, collaborative games and solution methods of these games according to various market structures.
12 Basic concepts in decision making, decision making process, decision environments under certainty, risk and uncertainty.
13 Decision criteria in risk environment: Best expected value criterion, highest probability criterion, ambition level criterion.
14 Decision criteria in uncertainty: Equal probability situations (Bayes-Laplace) criterion, pessimism (Wald) criterion, optimism (Plunger) criterion, generalized optimism (Hurwicz) criterion, regret (Savage) criterion.
15 Final Exam.

Recomended or Required Reading

Textbook(s):
1) Gibbons, Robert, Game Theory for Applied Economists, Princeton University 41, New Jersey, 1992.
2) Bakoğlu, H., Oyun Teorisi, Ege Üniversitesi Basımevi, Bornova- Izmir, 1991.
3) Friedman, James, Game Theory with Applications to Economics, 2nd ed., Oxford University Press,1990.
4) McMillan, John, Games, Strategies, and Managers. Oxford: Oxford University Press, 1992.
5) Osborne, Martin, J, An Introduction to Game Theory, Oxford University Press, New York, 2004.
6) H. Scott Bierman., Luis, Fernandez, Game Theory with Economic Applications, Addison- Wesley, Second Edition 1998.
7) Yılmaz, E, Oyun Teorisi, Literatür Yayıncılık, 2009.

Supplementary Book(s):
1) Çoban,Orhan, Endüstri Iktisadı ve Oyun Teorisi: Rekabetin Analitik Bir Incelemesi, Ekin Kitabevi Yayınları, Bursa, 2003.
2) Game Theory for Applied Economists, Robert Gibbons, Princeton University Press, 2003.

Planned Learning Activities and Teaching Methods

Face to face expression technique in the classroom, discussion and problem solving, reading research, classroom applications, student presentations.

Assessment Methods

SORTING NUMBER SHORT CODE LONG CODE FORMULA
1 MTE MIDTERM EXAM
2 FIN FINAL EXAM
3 FCGR FINAL COURSE GRADE (RESIT) MTE * 0.50 + FIN * 0.50
4 RST RESIT
5 FCGR FINAL COURSE GRADE (RESIT) MTE * 0.50 + RST * 0.50


*** Resit Exam is Not Administered in Institutions Where Resit is not Applicable.

Further Notes About Assessment Methods

None

Assessment Criteria

Exams: There will be held on mid-term exam and final exam during the semester.
Grades: 50 % Mid-Term Exam, 50 % Final Exam, 50 % Make-up Exam.

Language of Instruction

Turkish

Course Policies and Rules

1) Attending at least 70 percent of lectures and fulfill the requirements of the course are mandatory.
2) Plagiarism of any type will result in disciplinary action.

Contact Details for the Lecturer(s)

hakan.sonmez@deu.edu.tr

Office Hours

Thirsday, 09:30 - 12:00, Ground Floor, No: Z-08, Efes Vocational School, Selçuk / IZMIR.

Work Placement(s)

None

Workload Calculation

Activities Number Time (hours) Total Work Load (hours)
Lectures 12 2 24
Preparation about subject 14 1 14
Student Presentations 1 6 6
Preparation for midterm exam 1 12 12
Preparation for final exam 1 12 12
Preparations before/after weekly lectures 12 2 24
Reading 4 1 4
In-class practices 6 1 6
Preparing assignments 1 6 6
Final 1 2 2
Midterm 1 2 2
TOTAL WORKLOAD (hours) 112

Contribution of Learning Outcomes to Programme Outcomes

PO/LOPO.1PO.2PO.3PO.4PO.5PO.6PO.7PO.8PO.9PO.10PO.11PO.12PO.13PO.14PO.15PO.16
LO.15
LO.23
LO.34
LO.44
LO.55