Seoul, South Korea
Area of Study
Economics, Political Science
Taught In English
Course Level Recommendations
ISA offers course level recommendations in an effort to facilitate the determination of course levels by credential evaluators.We advice each institution to have their own credentials evaluator make the final decision regrading course levels.
Recommended U.S. Semester Credits3
Recommended U.S. Quarter Units4
Hours & Credits
Political economy belongs to the intersection of economics and politics. It uses assumptions of microeconomics to facilitate our understanding of politics. The tools of modern political economy include theories of rational decision making in individual choice situations (preference theory and expected utility theory) and in strategic interactions (game theory.) These general theories of individual behavior will help us understand the reason for the existence of political institutions (e.g., a state) and the scope of their authority (e.g., in what type of situations a state should and should not intervene.) Another standard part of political economy that will be covered is commonly referred to as social choice. Topics covered in this part include different voting methods and their properties, the nature of democratic choice and Arrow’s Theorem, strategic voting and misrepresentation (Farquharson’s conjecture and Gibbard and Sattherthwaite Theorem), predicting the outcome of voting (Median Voter Theorem, McKelvey’s Chaos Theorem.)
There is only one textbook we will be regularly using for this class. You will need to buy it and bring it with you since ISC will not be selling any textbooks for summer classes. The textbook, “Analyzing Politics” by Kenneth Shepsle, Norton, 2010, was written for an introductory class like ours. It is a very well written text that has been widely both in economics and in political science. I will supplement it with excerpts from a few selected readings that will be posted online and regular lecture notes of my own. Excerpts posted online will come from: Itzhak Gilboa’s Making Better Decisions: Decision Theory in Practice, Wiley, 2011; Avinash Dixit and Barry Nalebuff The Art of Strategy, Norton, 2008; Kenneth Williams, Game Theory a Behavioral Approach, Oxford University Press, 2013; David Kreps, Notes on the Theory of Choice, Westview Press, 1988; Raymond Wilder “The Axiomatic Method,” pages 1621-1640 in The World of Mathematics, Simon and Schuster, 1956; Avinash Dixit and Susan Skeat, Games of Strategy, Norton, New York, 2004. Robert Axelrod, The Evolution of Cooperation, Basic Books, 2006 (1st ed. 1984.
Courses and course hours of instruction are subject to change.