Master degree Economics - International student | Erasmus Mundus QEM » Study programme » First Year » Microeconomics 2
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Quantitative Economics Master - QEM :

 

Microeconomics 2


 

Number of Credits: 7 credits

 

Hours: 4 hours per week, about 60 hours total including tests

 

General Presentation: This course is the second one in a sequence of three courses that aim to cover Microeconomics at the Graduate level. Each course can be taken independently. Even if no prerequisite is asked in microeconomics, a course of Intermediate Economics may help.

 

Microeconomics 2A: Game Theory.

Basic elements of noncooperative games: what is a game, extensive form representation of a game, strategies and the normal form representation of a game, randomized choice. Simultaneous-move games: dominant and domminated strategies, rationalizable strategies, Nash equilibrium, games of incomplete information, Bayesian Nash equilibrium, the possibility of mistakes, trembling hand perfection. Dynamic games: sequential rationality, backward induction, subgame perfection, beliefs and sequential rationality, reasonable beliefs and forward induction.

 

Microeconomics 2B: Economics of Information.

The Principal-Agent problem: introduction and examples. The Rent Extraction-Efficiency Trade-Off with Hidden information (Adverse Selection): basic theory, examples, extensions. Hidden action (moral hazard): basic trade-offs, examples, extensions. Hidden action and hidden information: hybrid models. Non verifiability.

 

Books: Mas-Colell, A., Whinston, M.D., Green, J., Microeconomic Theory, Oxford University Press, 1995. Chapters 7-9 and Chapters 13-14 and 23.

 

Prerequisites: Logic and Sets, Multivariable Calculus, and Optimization