Rīgas Tehniskā universitāte                                                                                                         14.10.2022 12:41
                                               RTU Course "Game Theory for Civil Construction Economics"
                                    22501 Department of Construction Entrepreneurship and Real Estate Economics and Management
           General data
           Code                                              IBO707
           Course title                                      Game Theory for Civil Construction Economics
           Course status in the programme                    Compulsory/Courses of Limited Choice
           Responsible instructor                            Tatjana Tambovceva
           Academic staff                                    Ineta Geipele
                                                             Kristīne Fedotova
           Volume of the course: parts and credits points    1 part, 2.0 Credit Points, 3.0 ECTS credits
           Language of instruction                           LV
           Annotation                                        The game theory relates to the study of multipersonal decision problems, those that imply the
                                                             explicit agreement between the agents or players (cooperative games), as well as those that are
                                                             solved through individual decisions without the possibility to establish binding agreements among
                                                             the agents (non-cooperative games). The goal of the course is to set forth the elementary notions of
                                                             the game theory, as well as the economic applications that derive from it and that motivate it at the
                                                             same time. The central concept will be the analysis of the derivative profits of forming coalitions.
                                                             In particular, we will focus on the cooperative games of transferable utility, the goal of which is, to
                                                             study the formation of these coalitions and to analyze the criteria of distribution of the profits.
           Goals and objectives of the course in terms of    The goal of the course is to set forth the elementary notions of the game theory, as well as the
           competences and skills                            economic applications that derive from it and that motivate it at the same time.
                                                             Tasks:
                                                             •Be able to find Nash equilibrium.
                                                             •Be able to analyze the wish situation and to define participant’s relative forces.
                                                             •Be able to develop and depict steady and cooperative games.
                                                             •Be able to use game’s schemes, forecast entrepreneur.
                                                             •Be able to define strategy dominance level.
                                                             •Be able to define the optimal distribution type and profit allocation between enterprises.
           Structure and tasks of independent studies        Students independently analyze situations, solve practical tasks, play elements of the game in the
                                                             classroom
           Recommended literature                            Game Theoretical Applications to Economics and Operations Research, Springer, 2013,  ISBN
                                                             9781475726404
                                                             Jamal Moustafaev, Project Portfolio Management in Theory and Practice: Thirty Case Studies
                                                             from around the World, Auerbach Publications (CRC Press), 2016, ISBN 9781498769242
                                                             Dutta, Prajit K., Strategies and games: theory and practice, MIT Press, 1999.- 465 p. ISBN 978-0-
                                                             262-04169-0 .
                                                             Fernandez, L F.; Bierman, H S., Game theory with economic applications, Addison-Wesley,
                                                             1998.-245 p.  ISBN 978-0-201-84758-1
                                                             Gibbons, R. Game theory for applied economists.- Princeton University Press, 1992.- 267 p.
                                                             ISBN: 0691043086
                                                             Gintis, Herbert, Game theory evolving: a problem-centered introduction to modeling strategic
                                                             behavior, Princeton University Press, 2000.- 252p. ISBN 978-0-691-00943-8
                                                             Fudenberg, D., Tirole, J. Game theory.- MIT Press, 2000.- 579 p. ISBN: 0262061414
                                                             Leyton-Brown, Kevin; Shoham, Yoav, Essentials of Game Theory: A Concise, Multidisciplinary
                                                             Introduction, San Rafael, CA: Morgan & Claypool Publishers, 2008.- 88 p. ISBN 978-1-598-
                                                             29593-1, http://www.morganclaypool.com/doi/abs/10.2200/S00108ED1V01Y200802AIM003
                                                             Osborne, Martin J. An Introduction to game theory. – Oxford University Press, 2004.- 533 p.
                                                             ISBN: 0195128958
                                                             Rasmusen, Eric, Games and Information: An Introduction to Game Theory (4th ed.), Wiley-
                                                             Blackwell, 2006.-528 p. ISBN 978-1-4051-3666-2, http://www.rasmusen.org/GI/index.html
                                                             RTU IEVF pasniedzēju WEB lapas:
                                                             www.ortus.rtu.lv
           Course prerequisites                              Subject is based on the knowlwdge acquired in the bachelor studies and in 1st year master studies
           Course contents
           Content                                                                                                 Full- and part-time     Part time extramural
                                                                                                                    intramural studies           studies
                                                                                                                   Contact      Indep.     Contact      Indep.
                                                                                                                    Hours       work        Hours       work
           Introduction to game theory in economics.                                                                  2           4           1           5
           Normal form game with two players - Search of Nash equilibrium, a strategy of dominance.                   4           6           2           8
           Mixed strategy - search of equilibrium, mixed strategies using.                                            4           6           2           8
           Normal form game with n players - Identification of Nash equilibrium of complete games.                    4           6           2           8
           Consistent play and a perfect balance in subgames-a perfect balance of subgames, analysis of the           6           9           3           12
           market consistent games
           Normal form game with incomplete information - analysis of Kurno duopoly, static game                      8           9           4           13
           application.
           Cooperative games - search of cooperative games core , search of Shapley value, practical                 4           8           2          10
           application.
                                                                                                         Total:     32          48          16          64
          Learning outcomes and assessment
           Learning outcomes                                                                                    Assessment methods
           To know well basics of game theory in economics.                                                     Case studies.
           To be able to determine Nash equilibrium in completed games.                                         Case studies, tasks.
           To be able to analyze market's consistent games.                                                     Case studies, tasks.
           To be able to analyze Kurno duopoly.                                                                 Case studies, tasks.
           To be able to calculate Shapley value and to use it in practice.                                     Case studies, tasks.
          Evaluation criteria of study results
           Criterion                                                                                                                             %
           Practical tasks                                                                                                                       25
           Case studies                                                                                                                          25
           Activity in classes                                                                                                                   25
           Exam                                                                                                                                  25
                                                                                                                               Total:           100
          Study subject structure
              Part          CP                                Hours per Week                                                    Tests
                                            Lectures              Practical              Lab.                Test              Exam                Work
               1.           2.0                1.0                  1.0                   0.0                                     *