Microeconomics II
Objectives
Understand the
welfare implications of market equilibrium.
Identify economic situations where information is asymmetric,
analyze their consequences and compare possible policy measures.
Understand the potential conflict between optimality from
the individual and from the social viewpoints.
Understand implement ability problems and the role of
incentives.
Master general equilibrium analysis in different economic
environments (pure exchange, production and uncertainty)
Prove and understand the implications of the main welfare
results associated with market equilibrium.
Identify market failure in different contexts, including
externalities, public goods, market power and asymmetric information, and
compare possible solutions considering strategic interaction.
Understand the implications of different implementability concepts
in mechanism design.
Design optimal mechanisms under asymmetric information.
Understand the founding results of social choice theory.
General characterization
Code
6121
Credits
8
Responsible teacher
TBA
Hours
Weekly - Available soon
Total - Available soon
Teaching language
English
Prerequisites
n/a
Bibliography
TBA
Teaching method
Each week there will be one lecture. Students are expected to attend the lectures and to follow the discussion and profs of the main results, as well as applications to different economic settings. Students are also expected to solve problem set that require them to look for relevant references, in addition to applying the concepts, results and methodologies seen in class.
Evaluation method
Grade = 0.5*Problem set + 0.5*Exam
Subject matter
General Equilibrium
Competitive Equilibrium
Existence
Uniqueness
Production
Financial market
Market Failure
Externalities
Public goods
Market power
Asymmetric information
Adverse selection
Signalling
Screening
Principal agent problem
Mechanism Design
Revelation Principal
Optimality
Efficiency
Applications