Methods of Strategic Analysis

Methods of Strategic Analysis

State Research University Higher School of Economics

Professor:Jonathan Peterson, ,

Classes: 2nd Module, 2012-2013 academic year

Lecture: 20 hours

Seminar: 16 hours

Office hours:By appointment, Office #806.

Course Description:Game theory is the science of strategic decision-making in situations where players’ actions are interdependent. It provides a method for identifying optimal strategies and predicting the outcomes of strategic interactions. Using lectures, assigned readingsand assignments, we develop the basic tools of game theoryand then apply them to real-world situations. This course requires only basic mathematics, but a familiarity with microeconomics and strategy is helpful.

Course Objectives:

Familiarize students with Game Theory to a level that they can solve simple exercises.
Increase student’s proficiency in the English language.
Train students to use the above insights in analyzing business situations and opportunities.

Course Website:I have created a website for the course, to which I will regularly post items regarding the course.

Course grade components:

In-class quizzes and participation30%
Group final paper and presentation 30%
Final exam 40%

Details of the grade components:

In-class quizzes and seminar participation:

At the beginning of each class period, I will give a short, multiple-choice quiz that covers the required reading.The quizzes will be given promptly at the beginning of the class period. You must be on time to take the quiz.

Final project and presentation: The final deliverable is a small-group paper and presentation on a real-world application of game theory that you will choose with your group. A one-page proposal for this paper is due two weeks prior to the presentation and the full paper must be emailed to me one week after the presentation.More specific instructions for this assignmentwill beprovided later.

Groups: You may form groups with anyone in your seminar. Groups should have 2people. Contact me if you have trouble forming a group.

Typesetting rules for written work: All assignments must be in English. They must be typeset, double-spaced, 12 point font, Times New Roman font with one-inch margins (so, no more than 23 lines per page). Coversheets do not count towards the page limit. I have found from previous classes that approximately 10 percent of students ignore these rules. Please don’t be one of these students.To be fair to others, violating length rules may lead to a loss of points.

Student numbers:In order to accurately keep track of grades, you will be assigned student a five digit student number for this course. In addition to your name, you must write it on all assignments, quizzes and exams. These numbers will also be used when giving out individual reading assignments for participation in seminars.

Readings

The readings in this course will be the textbook and newspaper articles. The required reading list is given below for the lectures. The specific readings for the seminars will be newspaper of magazine articles will be given later on the course website.

Textbook for Lecture:

Thinking Strategically: The Competitive Edge in Business, Politics and Everyday Life,Dixit and Nalebuff, 1993.

Examples of Articles for Seminars:

The right game: Use game theory to shape strategy, Brandenburger and Nalebuff, Harvard Business Review, July-August 1995, pages 57-71
“Paying for PR – but only when it works,” Wall Street Journal, December 17, 2007, 2 pages
“New ads will stir up coffee wars,” Wall Street Journal, May 4, 2009, 1 page.
“From Seattle, with lattes: And Russian rivals await,” Wall Street Journal, August 31, 2007, 2 pages.
“Frontier: Not about to pack its bags,” Business Week, February 20, 2006, 2 pages.
“Geox takes on the goliaths of sport,” Business Week, April 14, 2008, 1 page
“Rolls Royce’s victory in landing engine job shows industry’s ills,” Wall Street Journal, January 2, 1996, 2 pages.
“Technology titans battle over format of DVD successor,” Wall Street Journal, March 15, 2004, 2 pages.
“When hybrid cars collide,” Wall Street Journal, February 6, 2003, 2 pages
“DeBeers, Russia wrangle over diamonds,” Wall Street Journal, November 28, 1996, 1 page
“Do Sold-Off Corporate Loans Do Worse?” Wall Street Journal, Nov. 19, 2008

Additional, more recent articles will be provided throughout the semester

Outline of Lectures

1/11/2012

Lecture 1: Introduction