Microeconomics 2: Market Imperfections (MikØk2)

Course content

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


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, principal-agent theory with applications to the insurance and labor market including moral hazard, as well as externalities 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.

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.

The course will be based on lecture notes which will be provided throughout the semester. Complementary readings give an overview of the relevant economic theories:

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
7,5 ECTS
Type of assessment
Written examination, 3 hours under invigilation
Type of assessment details
Written exam.
The course has been selected for ITX exam.
See important information about ITX-exams at Study Information, menu point: Exams -> Exam types and rules -> Written on-site exams (ITX).
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


Course number
7,5 ECTS
Programme level

1 block

Block 4
The number of seats may be reduced in the late registration period
Study Board of Mathematics and Computer Science
Contracting department
  • Department of Mathematical Sciences
Contracting faculty
  • Faculty of Science
Course Coordinator
  • Robert Mahlstedt   (16-5572656875773150646b6f76776867774368667271316e7831676e)
Saved on the 27-10-2022

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