Course Description

Game theory examines strategic interactions among decision-makers, providing a formal framework to analyze situations where individuals or organizations must consider the actions and reactions of others. On the other hand, behavioural finance explores the psychological and emotional aspects of financial decision-making, acknowledging that individuals are not always perfectly rational. Biases, heuristics, and cognitive limitations can significantly impact their choices.

This interdisciplinary course combines these captivating fields of study, offering students a unique opportunity to delve into both game theory and behavioural finance. Through the study of game theory, students will develop a profound understanding of strategic decision-making, equilibrium concepts, and the dynamics of cooperation and competition. By incorporating behavioural finance, the course enables students to comprehend the complexities of decision-making in financial contexts and the consequences of human behaviour on market outcomes.

This course equips students with a comprehensive toolkit to analyse and understand decision-making across various domains, ranging from everyday life interactions to complex global issues such as trade negotiations, climate change, energy policies, sustainable development, and international market anomalies.  Students will cultivate critical thinking skills and gain insights into the intricate nature of strategic decision-making in our interconnected world.

Course Learning Outcomes

On completing the course, students will be able to:

1. Understand the fundamental concepts and principles of game theory and behavioral economics without the need for advanced mathematical knowledge.
2. Apply intuitive reasoning to analyze strategic interactions and decision-making processes.
3. Identify and analyze cognitive biases and their impact on individual and collective decision-making.
4. Develop critical thinking skills and apply them to solve problems and make informed decisions.
5. Apply game theory and behavioral finance principles to understanding global socio-economic-politico issues.

Offer Semester and Day of Teaching

Second semester (Wed)