Course Syllabus
ECON 402: Decision Making and Strategy in Economics
Overview
| CATEGORY | INFORMATION |
|---|---|
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Credits: |
3 |
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Prerequisites: |
ECON 302; SCM 200 or STAT 200 |
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Delivery: |
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Dates: |
See the Calendar tab in Canvas. |
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Instructor: |
See the Orientation page in Canvas. |
Description
Classical economic theory focused on the behavior of aggregates (macro) and the behavior of individuals (micro). The second half of the twentieth century saw the development of a new field of economic theory, called game theory, that studies the decision-making of multiple individuals when each must anticipate the impact of the decisions of the others. Loosely speaking, a strategy is a process for making a decision in anticipation of the decisions of others, contingent on all available information. Game theory provides a precise expression of this concept and facilitates its application to many important economic problems. This course begins by developing basic concepts of game theory and then proceeds by interweaving the development of more complex concepts with examples of their economic applications.
Objectives
Upon successful completion of this course, you will be able to:
- Draw an extended form game if provided with a written description of a game.
- Use an extended form game to draw a normal form game.
- Find both pure strategy and mixed strategy Nash equilibria.
- Solve a game using backward induction when possible.
- Properly specify a player's strategy.
Organization
This course is made up of 13 lessons.
For each lesson, you will complete the following activities and assignments:
- Explore online course content.
- Read a few assigned readings.
- Answer practice questions.
In addition, you will participate in discussion forums with your classmates, complete six quantitative problem sets throughout the semester and complete three small projects. You will also take two midterm exams and one comprehensive final exam. The grade breakdown for these assignments is provided in the Assignments section of this syllabus.
Online Learning & Attendance
This course has been developed to promote asynchronous learning. The instructor and students do NOT meet on a designated day and time each week. For each lesson, there is a timeframe to complete all activities and assignments, and you may work at your own pace within that timeframe. However, you must adhere to the deadlines outlined on the calendar. (Click the Calendar tab in Canvas. Or check the Orientation page under the Modules tab.) You should log into the course daily to check for updates, review lessons, and participate in activities.
Texts & Other Materials
There is one required text.
- Harrington, Joseph. Games, Strategies, and Decision Making, 2nd edition. Worth Publishers. ISBN: 978-1429239967
You will need to have regular access to a scanner for homework assignments and exams. You will submit these by completing your work on paper (such as drawing graphs) and then scanning your papers to create an electronic file and submitting the electronic file to the appropriate dropbox on the course website. Please make sure to familiarize yourself with the submission procedure and the appropriate deadlines.
Grading
Final letter grades will be assigned based on the scale below.
Scale
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GRADE |
PERCENT |
|---|---|
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A |
93-100 |
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A- |
90-92.9 |
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B+ |
87-89.9 |
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B |
83-86.9 |
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B- |
80-82.9 |
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C+ |
77-79.9 |
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C |
70-76.9 |
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D |
60-69.9 |
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F |
0-59.9 |
Due Dates
All assignments are due by 11:59 PM Eastern Time on the date indicated on the Calendar. (Due dates can be also be viewed under the Syllabus tab.) Assignments will be available for submission until 4:00 AM Eastern Time the following day, but any submissions made between 11:59 PM and 4:00 AM will be marked late and points may be deducted at the instructor's discretion, up to and including all points, resulting in a zero. As a general rule, you will NOT be able to go back and make up missed assignments. It is your responsibility to keep up with your assignments. Students with an excused absence (e.g., hospitalization, jury duty, family emergency, or military service) may be asked to produce proper documentation in order to make up graded work. All make-up work is at the discretion of the instructor.
Veterans and currently serving military personnel and/or spouses with unique circumstances (e.g., upcoming deployments, drill/duty requirements, disabilities, VA appointments, etc.) are welcome and encouraged to communicate these, in advance if possible, to the instructor in the case that special arrangements need to be made.
Notes
- To Do List: Some assignments may not appear in the To Do list under the Home tab. Use the Calendar or Syllabus to ensure that you are fully aware of assignment due dates.
Valid Excuses
A major advantage of an online course is the flexibility it affords students for doing assignments. All assignments are intended to be accessed and completed within a window of several days duration, and can be done from anywhere in the world. (The necessary technology, even if you are not at home, will frequently be available at internet cafes, copy shops, or libraries.) The dates of these assignments have been provided to you well ahead of time in the course calendar. Given this flexibility, an unexpected event that makes it impossible for a student to complete an assignment on time should be very rare. It is expected that students plan ahead and allocate their time accordingly.
A student must inform the instructor as early as possible if they anticipate it will be impossible for them to execute an assignment on time. If a student does not notify the instructor, and fails to submit the assignment on time, that student will receive zero credit. If a student only notifies the instructor of a valid conflict after the assignment window has opened (or, for homework, less than 48 hours before the assignment is due), the instructor may arrange to have the deadline changed for that student, but the penalty will be 20% of the available credit per 24 hours late. These penalties are not negotiable.
If a student anticipates a valid conflict and informs the instructor before the assignment window opens (or more than 48 hours before the homework is due), the instructor may allow the student to submit the work at a later (or earlier) time without penalty. Valid conflicts are items that make it impossible for a student to complete the assignment at the scheduled time, primarily including illness, or family emergencies. Travel plans (except as required by university-sponsored activities) DO NOT constitute valid conflict. Students should plan to be available online until they finish the assignment. Encountering technical problems at the last minute is not a valid conflict. For more information on valid excuses, please see the Department of Economics policy on valid excuses, which is available at the Department website.
Assignments
Basic information about each assignment group is provided below. For detailed directions about an individual assignment, see the assignment information under the Modules tab.
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ASSIGNMENT |
Weight |
|---|---|
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Discussion Forums |
10% |
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Quizzes |
15% |
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Project Buffet (3) |
21% |
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Midterm Exams |
34% |
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Final Exam |
20% |
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Total |
100% |
Discussion Forums (10%)
There are seven discussion boards throughout the semester. The lowest grade will be discarded. Students are expected to make thoughtful contributions to the discussion boards.
Quizzes (15%)
There are twelve quizzes made up of multiple choice questions. The lowest two quiz scores will be automatically dropped at the end of the term. Additionally, there is a practice file upload assignment that also counts toward the "Quizzes" portion of your final grade.
Project Buffet (3 x 7% = 21% total)
You will complete 3 small projects, choosing from 5 options. Projects consist of applying game theory to real world scenarios.
Midterm Exams (2 x 17%=34% total)
There are two midterm exams made up of a variety of questions. The multiple choice will typically be quantitative, you will have to solve for a numerical value suggested by the problem. Some short answer questions can be typed directly into the exam form while others will require you to scan and upload handwritten work. Because the material in this course builds on itself, all exams will be cumulative but with a focus on the material that has not been tested yet.
Final Exam (20%)
At the end of the semester, you will take a comprehensive final exam. The exam covers all lessons from the course, but with an emphasis on the lessons after the second midterm exam. The exam format will be the same as the midterms: a mix of multiple choice questions and short answer questions.
University Policies
Academic Integrity
According to Penn State policy G-9: Academic Integrity, an academic integrity violation is “an intentional, unintentional, or attempted violation of course or assessment policies to gain an academic advantage or to advantage or disadvantage another student academically.” Unless your instructor tells you otherwise, you must complete all course work entirely on your own, using only sources that have been permitted by your instructor, and you may not assist other students with papers, quizzes, exams, or other assessments. If your instructor allows you to use ideas, images, or word phrases created by another person (e.g., from Course Hero or Chegg) or by generative technology, such as ChatGPT, you must identify their source. You may not submit false or fabricated information, use the same academic work for credit in multiple courses, or share instructional content. Students with questions about academic integrity should ask their instructor before submitting work.
Students facing allegations of academic misconduct may not drop/withdraw from the affected course unless they are cleared of wrongdoing (see G-9: Academic Integrity G-9: Academic Integrity). Attempted drops will be prevented or reversed, and students will be expected to complete course work and meet course deadlines. Students who are found responsible for academic integrity violations face academic sanctions, which can be severe, and put themselves at jeopardy for other outcomes (see ).
Disability Access
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Counseling and Psychological Services
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Students may request assistance from CAPS regarding a variety of common mental health issues, including anxiety, depression, relationship difficulties, and stress. CAPS services are designed to enhance students' ability to fully benefit from the University environment and academic experience. Call CAPS at 814-863-0395 (8 am-5 pm, Monday-Friday EST) or submit an inquiry online at https://studentaffairs.psu.edu/form/caps-contact-form to schedule an appointment with a mental health advocate, who can help you address mental health concerns that may interfere with your academic progress or social development. This appointment will include a one-on-one session that can be conducted via telephone, teleconference (Skype, FaceTime, etc.), or locally at Penn State University Park. For more information on services provided through CAPS, please visit the Penn State CAPS website at http://studentaffairs.psu.edu/counseling/. Students enrolled at the World Campus are also encouraged to visit its Mental Health Services page at http://student.worldcampus.psu.edu/student-services/mental-health-services.
Reminder: These services are for non-emergencies only. If you or someone you know is experiencing a crisis situation, please call your local crisis center or 911.
Nondiscrimination
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Reporting a Bias Incident
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TEACH Act
The materials on the course website are only for the use of students enrolled in this course for purposes associated with this course and may not be retained or further disseminated.
University Emergency Procedure
In the event of a University-wide emergency, the course may be subject to changes. Exigent circumstances may require alternative delivery methods, class materials, and interactions with the instructor and/or classmates. In addition, there may be revisions to grading policies and the Calendar, including assignments and their due dates.
In the event of a University-wide emergency, please refer to the Canvas website at https://psu.instructure.com for specific information related to the course. For more general information about the emergency situation, please refer to the Penn State website at https://www.psu.edu or Penn State News website at https://news.psu.edu.
To register with PSUAlert, a service designed to alert the Penn State community when situations arise that affect the ability of a campus to function normally, please go to the PSU Alert website at https://psualert.psu.edu/. Subscribers can receive alerts by text message to cell phones, and also can elect to have alerts sent to an email address.
Syllabus Subject to Change
The class will likely adhere to the information outlined in this Syllabus and the Calendar, but adjustments may be made based on what actually transpires during the semester. Remaining in the course after reading this Syllabus will signal that you accept the possibility of changes and responsibility for being aware of them.
Course Summary:
| Date | Details | Due |
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