Project title Computation of Equilibria in Bargaining Models
Duration  10 weeks
Description

Many social, political and economic problems are suitably modelled by bargaining models:  buyer-seller interaction, firm-union negotiation on labour contract, allocation of the intra-household chores, peace agreement among unfriendly countries, or out-of-court negotiations between two litigating parties.

The bargaining models are in general complex in order to capture the real-world aspect of the problem. Therefore, they do not have closed-form solutions. For policy analysis, comparative statics and empirical applications, we need to compute the equilibria of the models.

The aim of this project is to provide algorithms to compute equilibria in dynamic bargaining models. The algorithms we provide are closely related to the algorithms to compute Nash equilibria of normal-form games.

Expected outcomes & deliverables

The students will gain skills in

  • learning and writing algorithms to compute equilibria in games,
  • do a critical literature review,
  • data collection.

Moreover, at the end of this project, the students will also have a clear understanding of the bargaining models, and exercise rigorous techniques in game theory and microeconomics. These will be useful to develop policy analysis and offer the students the possibility to develop a wide research agenda.

Students will be asked to produce weekly reports, and a final document at the end of the project. Students will be asked to review literature, understand and discuss basic bargaining models, collect data, write codes and read proofs when necessary.

Student qualities

The project is open to applications from students with a background in economics, applied mathematics or computer science. Applicants should already possess basic programming skills. In particular, competence with Python or Matlab is mandatory. Students who have taken game theory and intermediate (advanced) microeconomics courses will be given priority.

Primary supervisor

Dr. Metin Uyanik

Further information Candidates interests in applying to the project can write to m.uyanik@uq.edu.au if they have specific inquiries about the project