Microeconomic Theory II
Objectives
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.
General characterization
Code
270101
Credits
7
Responsible teacher
Alexander Coutts
Hours
Weekly - Available soon
Total - Available soon
Teaching language
English
Prerequisites
Available soon
Bibliography
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
Teaching method
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.
Evaluation method
Grade = 0.36*Problem Sets + 0.32*Midterm + 0.32*Final Exam 3 Problem Sets
Subject matter
1. General Equilibrium
1.1 Competitive Equilibrium
1.2 Existence
1.3 Uniqueness
1.4 Production
1.5 Financial Markets
2. Market Failure
2.1 Externalities
2.2 Public Goods
2.3 Market Power
3. Asymmetric Information
3.1 Adverse Selection
3.2 Signaling
3.3 Screening
3.4 Principal Agent Problem
4. Mechanism Design
4.1 Revelation Principal
4.2 Optimality
4.3 Efficiency
4.4 Applications