Microeconomics 2: Market Imperfections (MikØk2)

Course content

This course treats non-cooperative game theory, auctions, externalities and public goods, as well as asymmetric information including adverse selection and moral hazard.


Bacheloruddannelsen i matematik-økonomi

Learning outcome

Knowledge: The course presents microeconomic theory of markets with imperfections. Non-cooperative game theory is introduced and applied to the analysis of imperfect markets. The course covers models exhibiting asymmetric information and externalities. The applications include auctions, bargaining, moral hazard, and public goods. Ideas from behavioural economics and knowledge of economic experiments are presented along with the more classical game theory.

Skills: Solving non-cooperative games, and models with imperfect markets. Deriving these models' predictions. Applying game-theoretic arguments. Solving models of auctions.

Competences: Applying game-theoretic analysis and economic arguments in the face of strategic decisions. Applying the models to predict behaviour and outcomes of strategic situations.

5 hours of lectures and 3 hours of exercise classes per week for 7 weeks.

Varian, H. R. (2014). Intermediate Microeconomics: A Modern Approach: Ninth International Student Edition. WW Norton & Company.

Jehle, G. A., & Reny, P. J. (2011). Advanced Microeconomic Theory (Third). Essex: Pearson Education Limited.

Microeconomics 1 (MikØk1), Measures and Integrals (MI).

Continuous feedback during the course of the semester
7,5 ECTS
Type of assessment
Written examination, 3 hours under invigilation
Written exam

The course has been selected for ITX exam
Without aids
Marking scale
7-point grading scale
Censorship form
External censorship
Criteria for exam assessment

See learning outcome.

Single subject courses (day)

  • Category
  • Hours
  • Lectures
  • 35
  • Preparation
  • 147
  • Theory exercises
  • 21
  • Exam
  • 3
  • English
  • 206