CCGL9078 Global Issues

Games in Everyday Life: Exploring Game Theory, Behavioral Finance and Global Issues


Course Description

Game theory examines strategic interactions among decision-makers, providing a formal framework to analyze situations where individuals or organizations must consider the actions and reactions of others. On the other hand, behavioural finance explores the psychological and emotional aspects of financial decision-making, acknowledging that individuals are not always perfectly rational. Biases, heuristics, and cognitive limitations can significantly impact their choices.

This interdisciplinary course combines these captivating fields of study, offering students a unique opportunity to delve into both game theory and behavioural finance. Through the study of game theory, students will develop a profound understanding of strategic decision-making, equilibrium concepts, and the dynamics of cooperation and competition. By incorporating behavioural finance, the course enables students to comprehend the complexities of decision-making in financial contexts and the consequences of human behaviour on market outcomes.

This course equips students with a comprehensive toolkit to analyse and understand decision-making across various domains, ranging from everyday life interactions to complex global issues such as trade negotiations, climate change, energy policies, sustainable development, and international market anomalies.  Students will cultivate critical thinking skills and gain insights into the intricate nature of strategic decision-making in our interconnected world.

Course Learning Outcomes

On completing the course, students will be able to:

  1. Understand the fundamental concepts and principles of game theory and behavioral economics without the need for advanced mathematical knowledge.
  2. Apply intuitive reasoning to analyze strategic interactions and decision-making processes.
  3. Identify and analyze cognitive biases and their impact on individual and collective decision-making.
  4. Develop critical thinking skills and apply them to solve problems and make informed decisions.
  5. Apply game theory and behavioral finance principles to understanding global socio-economic-politico issues.

Offer Semester and Day of Teaching

Second semester (Wed)


Study Load

Activities Number of hours
Lectures 24
Tutorials 10
Reading / Self-study 30
Assessment: Essay / Report writing 25
Assessment: Presentation (incl preparation) 30
Assessment: In-class test 1
Total: 120

Assessment: 100% coursework

Assessment Tasks Weighting
In-class quizzes 30
Tutorial participation 20
Reflection paper 20
Group project and audio-visual presentation 30

Required Reading

  • Dixit, A, Skeath, S., & McAdams, D. (2022). Games of Strategy (5th ed.). Norton.
  • Kahneman, D. (2012). Thinking Fast and Slow (1st or any ed.). Penguin. [Parts 1 & 2]

Course Co-ordinator and Teacher(s)

Course Co-ordinator Contact
Dr S.Y.W. Chiu
Faculty of Business and Economics (Economics)
Tel: 3917 1026
Email: stephen.chiu@hku.hk
Teacher(s) Contact
Dr S.Y.W. Chiu
Faculty of Business and Economics (Economics)
Tel: 3917 1026
Email: stephen.chiu@hku.hk
Dr K.S. Tse
Faculty of Business and Economics (Finance)
Tel: 2857 8636
Email: ktse@hku.hk