Firms frequently operate in strategic environments. In such environments performance depends on the decisions of the agent as well as the decisions of its competitors. Game theory is the formal analysis of strategic decision making.

This course teaches you the main principles of game theory, while developing your ability to think and act in strategic environments. You learn to formulate optimal business strategies, taking into account that your competitors are also formulating rational business strategies.

A wide range of business applications are used. These include price setting, contract design, agency relations, voting in boards, auctions, bargaining, advertising, and reputation building.

Course content

  • Game forms
  • Dominant and rationalizable strategies
  • Nash equilibrium
  • Dynamic games
  • Repeated games
  • Games with asymmetric information
  • Signalling and reputation

Students will participate in two game experiments.


This is an excerpt from the complete course description for the course. If you are an active student at BI, you can find the complete course descriptions with information on eg. learning goals, learning process, curriculum and exam at portal.bi.no. We reserve the right to make changes to this description.