Strategic Behaviour in Business and Economics

Universidad Autónoma de Barcelona

Course Description

  • Course Name

    Strategic Behaviour in Business and Economics

  • Host University

    Universidad Autónoma de Barcelona

  • Location

    Barcelona, Spain

  • Area of Study

    Applied Behavioral Science, Behavioral Science, Business, Economics, Sociology

  • Language Level

    Taught In English

    Hours & Credits

  • Contact Hours

    45
  • Recommended U.S. Semester Credits
    3
  • Recommended U.S. Quarter Units
    4
  • Overview

    Number of sessions: 30
    Length of each session: 1,5 h
    Total length of the module: 45 hours

    INTRODUCTION TO THE COURSE
    This course in designed as a brief introduction to individual decision making. Its main objective
    is to provide the students with decision theory and game theory tools that can be useful not only
    in business environments but also in everyday life.
    We begin with an experiment including several basic decision problems and games. The second
    and the third part of the course are the core of the subject where the student actually learns how
    to solve and analyse decision problems and games. Once the basic theory is learned, we proceed
    to some critiques and alternative approaches.

    REQUIREMENTS
    · Basic Knowledge of Micro Economics and Mathematics

    CONTENTS
    1. Introduction
    1.1 Problems we solve every day: What are we going to do?
    1.2 The experiment (Note: Not an exam)
    2. Individual decision making
    2.1 Basic concepts: Values, preferences, and utility
    2.2 Choice under uncertainty: Lotteries and risk aversion
    2.3 Value of information: Decision trees and backward induction
    3. Game Theory
    3.1. What is a Game?
    3.1.1 The elements of a Game
    3.1.2 The Rules of the Game: Example
    3.1.3 Examples of Game Situations
    3.1.3 Types of Games
    3.2 Solution Concepts
    3.2.1 Static Games of complete information: Dominant Strategies,
    Dominated Strategies, and Nash Equilibrium in pure and mixed
    Strategies
    3.2.2 Dynamic Games of complete information: Nash Equilibrium,
    Backward Induction and Subgame Perfection
    4. The Theories and the Real World
    4.1 Applications: Auctions and Negotiation
    4.2 What the theory does not reflect? (Back to The experiment)
    5. Alternative approaches
    5.1 Psychology
    5.2 Evolution
    5.3 Artificial intelligence
    GRADING
    Problem Sets (45%): Up to four Problem Sets will be distributed during the course, collected
    one week later, graded, and returned back.
    Strategic Memo (20%): A Strategic Memo, that will consist of the analysis of one real-worldcase
    using the tools learned in class, will be written in teams (of up to 5 members) and
    submitted. In-class presentations will take place during the last week of the course. (Length: 2
    pages including figures).
    Final Exam (35%): A Final Exam consisting of questions and exercises on the topics covered
    in class.