Course Details

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Course Information
SemesterCourse Unit CodeCourse Unit TitleT+P+LCreditNumber of ECTS CreditsLast Updated Date
1DSBE522STRATEGIC THINKING3+0+037,513.05.2025

 
Course Details
Language of Instruction English
Level of Course Unit Master's Degree
Department / Program DATA SCIENCE
Type of Program Formal Education
Type of Course Unit Elective
Course Delivery Method Face To Face
Objectives of the Course Developing an advanced understanding of the strategic interaction in business and
daily life.
Presenting game theoretical models.
Introducing mechanism design.
Course Content Subjects of economics, strategic management, and game theory are examined in
connection with each other throughout the course. More specifically, strategic, and
mutual decision-making processes of individuals, firms, and political actors are
examined. Basic tools of game theory are introduced which help forming an
understanding of different strategic situations and predicting the most likely
outcome. Links between theory and practice are formed by examining “case studies”.
In addition, subjects of decision making in situations involving risk and uncertainty
are examined.understanding basic problems in energy economics. Subjects are developed in order
to cover policy tools for analyzing market failures and solving related problems. In
addition, topics such as energy and electricity markets, definition and analysis of
resource and energy trading markets are examined.
Course Methods and Techniques -
Prerequisites and co-requisities None
Course Coordinator Associate Prof.Dr. Umut Türk umut.turk@agu.edu.tr
Name of Lecturers None
Assistants Research Assist. Semih Peker semih.peker@agu.edu.tr
Work Placement(s) No

Recommended or Required Reading
Resources -
Course Notes -


Planned Learning Activities and Teaching Methods
Activities are given in detail in the section of "Assessment Methods and Criteria" and "Workload Calculation"

Assessment Methods and Criteria
In-Term Studies Quantity Percentage
Yarıyıl İçi Çalışmalarının Başarı Notunun Katkısı 1 % 40
Final examination 1 % 60
Total
2
% 100

 
ECTS Allocated Based on Student Workload
Activities Quantity Duration Total Work Load
Araştırma Ödevi 1 30 30
Seminer 1 15 15
Yüz Yüze Ders 3 30 90
Derse Devam 1 30 30
Final Sınavı 2 30 60
Total Work Load   Number of ECTS Credits 7,5 225

 
Course Learning Outcomes: Upon the successful completion of this course, students will be able to:
NoLearning Outcomes
1 Discuss research literature on energy economics and policy issues.
2 Describe current energy market trends and relations between current conditions and historical markets.
3 Describe theoretically and empirically the energy demand and supply, and how they interact in a market.
4 Analyze the effects of energy and environmental policies on the supply and demand of different types of energy.

 
Weekly Detailed Course Contents
WeekTopicsStudy MaterialsMaterials
1 Week 1: Introduction to Strategic Thinking • What is strategy? Strategic thinking vs. tactical action • Interdisciplinary approach: economics, management, and game theory • Key concepts: rationality, interdependence, incentives • Case: Introduction case (e.g., pricing war between firms) - -
2 Week 2: Fundamentals of Game Theory I – Static Games of Complete Information • Players, strategies, payoffs • Representation of games: normal form • Dominant strategies and dominance solvability • Reading: Dixit & Nalebuff – The Art of Strategy (selected chapters) - -
3 Week 3: Fundamentals of Game Theory II – Nash Equilibrium • Best responses and strategic stability • Nash Equilibrium: concept and interpretation • Applications in oligopoly, pricing, and voting • Problem set: Finding Nash Equilibria in simple games - -
4 Week 4: Strategic Behavior and Coordination • Multiple equilibria and coordination problems • Focal points (Schelling), culture, and conventions • Business applications: standard-setting, tech competition • Case study: Platform competition (e.g., Apple vs. Android) - -
5 Week 5: Mixed Strategies and Randomized Play • Why randomize? Security strategies and unpredictability • Solving mixed strategy equilibria • Application in sports, military, pricing • Activity: Rock-paper-scissors tournament and analysis - -
6 Week 6: Dynamic Games and Sequential Moves • Extensive form games and game trees • Backward induction and subgame perfect equilibrium • Credible threats and commitment • Case: Entry deterrence (e.g., Walmart vs. local firms) - -
7 Week 7: Repeated Games and Strategic Reputation • Infinite and finite repetition • Tit-for-tat and cooperation • Reputation, trust, and punishment strategies • Case: Cartel stability in OPEC or airline industries - -
8 Week 8: Midterm + Application Workshop • In-class or take-home Midterm Exam • Workshop: Students work in groups to model real-world scenarios using game theory • Example scenarios: trade wars, team projects, price wars - -
9 Week 9: Asymmetric Information and Signaling • Adverse selection and signaling in strategic environments • Cheap talk, costly signals, and credibility • Examples from job markets and product warranties • Case: Education as a signal (Spence model) - -
10 Week 10: Mechanism Design and Incentives • Introduction to mechanism design: reverse game theory • Designing rules to achieve desired outcomes • Auctions, voting systems, and contract design • Application: Designing incentive-compatible contracts - -
11 Week 11: Behavioral and Experimental Perspectives • Behavioral critiques of standard game theory • Bounded rationality, framing, loss aversion • Experimental findings and deviations from Nash • Activity: In-class ultimatum and dictator games - -
12 Week 12: Risk, Uncertainty, and Strategic Decision-Making • Decision theory under uncertainty • Expected utility and risk preferences • Strategic thinking with incomplete information • Case: Insurance markets or R&D investments - -
13 Week 13: Strategic Thinking in Management and Politics • Strategic positioning and competitive advantage (Porter framework) • Political strategy and coalition-building • Influence diagrams and stakeholder games • Case: Business strategy (e.g., Netflix vs. Blockbuster) or political negotiation - -
14 Week 14: Final Presentations + Course Review • Student presentations of original case analyses using strategic models • Synthesis of game theory, strategy, and real-world application • Final review session for exam or final paper - -

 
Contribution of Learning Outcomes to Programme Outcomes
P1 P2 P3 P4 P5 P6 P7 P8 P9 P10
All 4 3 3 5 2 5 2 4 5
C1 5 5 5 3 5
C2 1 5 5 5 5 5
C3 4 4 5 5 5 5
C4 4 5 5 5 1 5 5 4 5 5

  Contribution: 1: Very Slight 2:Slight 3:Moderate 4:Significant 5:Very Significant

  
  https://sis.agu.edu.tr/oibs/bologna/progCourseDetails.aspx?curCourse=76787&lang=en
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