Application of game theory in marketing

Course title
Application of game theory in marketing
Course tag
11414
Semester
2
Course status
Mandatory
ECTS
4
Lectures
30
Practice
30
Independent work
60
Total
120
Teachers and associates
PhD Robert Kopal, University College Professor
Mirko Talajić, Lecturer
The course aims
The aim of this course is to teach students about the game theory anh how they can use it to make better decisions. Through theoretical and practical part of the program, students practice different decision making strategies starting from the information obtained from the market and from rivals in the market. The most important aim of the course is to develop students' innovative, professional and mathematical approach to real-life challenges and gain knowledge to be a few steps ahead of the competition.
Content
Game theory analysis segment. Terminology structures games. Classification of games. Simultaneous games with pure strategy 1/2. Simultaneous games with pure strategy 2/2. Simultaneous games with mixed strategies. Sequential games 1/2. Sequential games 2/2. Uncertainty and information. Strategic moves. Evolutionary game theory. Auction. Price competition. Direct foreign investment. Hostile company takeover. Prevention of entering the market. Research and development (r and d) and patents.
Literature:
Course handbook prepared and printed by Algebra University College
Supplementary literature
Carmichael, F.: A Guide to Game Theory. Financial Times/Prentice Hall; 1st edition, 2005.
Dixit, A., Skeath, S. i Reiley, D. H.: Games of Strategy. New York: W. W. Norton. 3rd edition, 2009.

Minimum learning outcomes

  1. Identify segments of game theory and classify games.
  2. Recommend ways of solving the problem of simultaneous games with pure and mixed strategies and sequential games.
  3. Recommend solving various problems of insecurity in the games.
  4. Select the appropriate application of certain strategic moves.
  5. Select the appropriate application of certain methods of game theory in marketing and business.

Preferred learning outcomes

  1. Compare segments of game theory and classify games.
  2. Support opinion on practical problem solving in term of simultaneous games with pure and mixed strategies and sequential games.
  3. Support opinion on the practical solution of problems of insecurity in the games.
  4. Support opinion in applying strategic moves.
  5. Critically judge the practical application of methods of game theory in marketing and business.