Microeconomic Theory II
The course covers:
(1) General equilibrium and welfare analysis.
(2) An overview of the main instances of market failure.
(3) Game theoretic analysis of asymmetric information.
(4) Mechanism design and its applications.
Weekly - Available soon
Total - Available soon
Mas-Colell A, Whinston MD and Green JR (1995) Microeconomic Theory. Oxford University Press, New York.
Jehle G, Reny P (2011) Advanced Microeconomic Theory. Pearson Education Limited, Essex, UK
Each week there will be one lecture (3 hours). Students are expected to attend the lectures and to follow the discussion and proofs of the main results, as well as applications to different economic settings. Students are also expected to solve problem sets that require them to look for relevant references, in addition to applying the concepts, results and methodologies seen in class.
Grade = 0.36*Problem Sets + 0.32*Midterm + 0.32*Final Exam 3 Problem Sets
1. General Equilibrium
1.1 Competitive Equilibrium
1.5 Financial Markets
2. Market Failure
2.2 Public Goods
2.3 Market Power
3. Asymmetric Information
3.1 Adverse Selection
3.4 Principal Agent Problem
4. Mechanism Design
4.1 Revelation Principal
Programs where the course is taught: