|Semester 1 Credit Value:||10|
|Semester 2 Credit Value:||10|
Semester 1 aims: To provide an overview of modern microeconomics at an advanced undergraduate level by extending the analysis of perfectly competitive markets, considering the effects of: missing markets and trade frictions, market power, time, uncertainty and strategic interaction.
Semester 2 aims: To introduce students to the study of economic behaviour under asymmetric information and to analyse the welfare implications of asymmetric information on market outcomes.
Semester 1 Syllabus:
TOPIC 1: General Equilibrium and Welfare Economics
Exchange and Competitive Equilibrium. Welfare Theorems.
TOPIC 2: Market Power and Missing Markets
Weak and strong monopoly. Externalities
TOPIC 3: Cooperative Game Theory and Social Choice
The core. Equivalence Theorem. Harsanyi welfare function. Shapley value
TOPIC 4: Strategic Interaction.
non-cooperative game theory. Strategic (Nash and subgame - perfect) equilibria in static and dynamic games.
TOPIC 5: Repeated Games and Signalling Games.
The Folk Theorem. Perfect Bayesian equilibria in signalling games.
TOPIC 6. Bargaining
Cooperative (Nash) bargaining. Non-cooperative (Rubinstein) bargaining.
TOPIC 7: Uncertainty and Trade Frictions
Search theory. Market equlibrium with trade frictions.
Semester 2 Syllabus:
TOPIC 1: Search and Matching
Equilibrium price dispersion. Matching.
TOPIC 2: Hidden Information
Adverse selection in labour, goods and insurance markets.
TOPIC 3: Screening
Screening contracts in labour and insurance markets.
TOPIC 4: Signalling
Signalling in labour, goods and financial markets.
TOPIC 5: Hidden Action
Moral hazard in labour and insurance markets. Contract theory
TOPIC 6: Auctions
First-price and second-price auctions.
TOPIC 7: Bargaining
Bargaining with incomplete information.
|Guided Independent Study||Assessment preparation and completion||1||64:00||64:00||N/A|
|Scheduled Learning And Teaching Activities||Lecture||14||2:00||28:00||N/A|
|Guided Independent Study||Directed research and reading||1||50:00||50:00||N/A|
|Scheduled Learning And Teaching Activities||Small group teaching||8||1:00||8:00||N/A|
|Guided Independent Study||Independent study||1||50:00||50:00||N/A|
1.Lectures provide an in-depth presentation of theoretical models and required techniques, as well as guidance on how to apply the analysis to real-world economic situations.
2.Seminars take students through applications of lecture material and provide solutions to problem sets done in independent study.
3.Independent study involves following up reading list references and practicing analytical skills.
The format of resits will be determined by the Board of Examiners
Exam tests understanding of advanced Microeconomic theories and their application to real market situations.
Disclaimer: The University will use all reasonable endeavours to deliver modules in accordance with the descriptions set out in this catalogue. Every effort has been made to ensure the accuracy of the information, however, the University reserves the right to introduce changes to the information given including the addition, withdrawal or restructuring of modules if it considers such action to be necessary.