Skip to main content


ECO3001 : Advanced Microeconomics

  • Offered for Year: 2019/20
  • Module Leader(s): Dr Francis Kiraly
  • Owning School: Newcastle University Business School
  • Teaching Location: Newcastle City Campus
Semester 1 Credit Value: 10
Semester 2 Credit Value: 10
ECTS Credits: 10.0


Semester 1 aims: To introduce the method of game theory and to analyse key institutions of exchange that involve strategic behaviour.

Semester 2 aims: To extend the analysis to allocation mechanisms that arise in situations characterised by asymmetric information.

Outline Of Syllabus


1.       Game Theory 1: games in coalitional form
2.       Game Theory 2: strategic games in normal form
3.       Game Theory 3: strategic games in extensive form
4.       Exchange and efficiency
5.       Competitive equilibrium
6.       Axiomatic bargaining
7.       Strategic bargaining


1.       Search
2.       Price dispersion
3.       Matching
4.       Hidden information and adverse selection
5.       Screening and signalling
6.       Hidden action and moral hazard
7.       Bargaining and auctions

Teaching Methods

Teaching Activities
Category Activity Number Length Student Hours Comment
Scheduled Learning And Teaching ActivitiesLecture142:0028:00N/A
Scheduled Learning And Teaching ActivitiesLecture21:002:00N/A
Guided Independent StudyAssessment preparation and completion164:0064:00N/A
Guided Independent StudyDirected research and reading150:0050:00N/A
Scheduled Learning And Teaching ActivitiesSmall group teaching61:006:00N/A
Guided Independent StudyIndependent study150:0050:00N/A
Teaching Rationale And Relationship

1.       Lectures provide an introduction to game theory and present theoretical models of major exchange institutions and allocation mechanisms.
2.       Seminars take students through economic and numerical applications and provide solutions to problem sets.
3.       Independent study involves preparing problem sets and reading additional recommended material.

Assessment Methods

The format of resits will be determined by the Board of Examiners

Description Length Semester When Set Percentage Comment
Written Examination601M25Unseen in-class test, SCHEDULED IN-HOUSE BY NUBS.
Written Examination1502A75N/A
Formative Assessments
Description Semester When Set Comment
Prob solv exercises1MProblem Solving (Written) Exercises handed in by students before Seminars, followed by group feedback in class.
Prob solv exercises2MProblem Solving (Written) Exercises handed in by students before Seminars, followed by group feedback in class.
Written exercise2MIndividual feedback on answers to past exam papers.
Assessment Rationale And Relationship

The mid-term examination is designed to test students’ ability to formalise and analyse game theoretical models of strategic interaction.

The final examination is designed to assess students’ understanding of key institutions of exchange using the methods of modern microeconomic theory.

Reading Lists