Microeconomics 2: Market Imperfections (MikØk2)
The course presents microeconomic theory of markets with imperfections including game theory, information economics, externalities and public goods, as well as an introduction to behavioral economics.
Students will learn how economic problems involving strategic situations can be modeled and how these models are solved. The course intention is that the student becomes able to work with modern economic theory, for instance within the areas of industrial organization, international economics, labor economics, public economics, political economics and financial economics.
In the first part of the course, students will learn about the basics of non-cooperative game theory including static games with complete and incomplete information, dynamic games and games with imperfect information.
The second part of course is devoted to situations with information asymmetries which lead to principal-agent problems, including moral hazard and adverse selection.
The third part of the course covers situations with externalities, public good problems and provides an introduction to mechanism design, as well as topics related to behavioral economics.
Bacheloruddannelsen i matematik-økonomi
- Present, explain and define the concepts and the models studies throughout the course in a clear and precise way.
- Formally state the definition of economic concepts and explain the key differences between different classes of models.
- Account for the equilibrium solution concepts that are relevant for these models.
- Illustrate the economic mechanisms underlying basic microeconomic theory.
- Solving non-cooperative games and models with imperfect markets.
- Explaining the relevant steps in the reasoning of the solution
- Interpreting the outcomes of the analysis and deriving predictions based on these models.
- Applying theoretical arguments in the context of game theory, situations with asymmetric information and externalities
- Evaluate and debate the crucial assumptions underlying the theory.
- Applying game-theoretic analysis and economic arguments in the face of strategic decisions.
- Applying the models to predict behaviour and outcomes of strategic situations.
- Set up, prove, analyze and apply the theories and methods used in the course in an independent manner.
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.
The first two parts of the course are closely related to
- Jehle, G. A., & Reny, P. J. (2011). Advanced Microeconomic Theory (Third). Essex: Pearson Education Limited.
For the third part of the course, complementary readings provide an overview of the relevant economic theories:
- Varian, H. R. (2014). Intermediate Microeconomics: A Modern Approach: Ninth International Student Edition. WW Norton & Company.
- Some short additional materials (can be downloaded from Absalon)
Microeconomics 1 (MikØk1), Probability Theory (Sand) or similar.
- 7,5 ECTS
- Type of assessment
Written examination, 3 hours under invigilation
- Type of assessment details
- Written exam
- Without aids
- Marking scale
- 7-point grading scale
- Censorship form
- External censorship
Criteria for exam assessment
The student should convincingly and accurately demonstrate the knowledge, skills and competences described under Intended learning outcome.
Single subject courses (day)
- Theory exercises
- Course number
- 7,5 ECTS
- Programme level
- Block 4
- The number of seats may be reduced in the late registration period
- Study Board of Mathematics and Computer Science
- Department of Mathematical Sciences
- Faculty of Science
- Robert Mahlstedt (16-5c796c6f7c7e38576b72767d7e6f6e7e4a6f6d797838757f386e75)
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