Advanced Microeconomics 2
This is the second course in Advanced Microeconomics. We study rational strategic decision making, i.e. game theory in static and dynamic contexts both with and without complete information. After developing the core game theoretic tools we study applications of game theory to bargaining, auctions, signaling games, strategic information transmission, repeated games, issues of reputation and market design. This will be complemented by understanding the actual behavior of decision makers in strategic settings, i.e. behavioural game theory.
Full module specification
|Module title:||Advanced Microeconomics 2|
|Duration of module:||
Duration (weeks) - term 1: |
The aim of the module is to develop formal reasoning abilities and apply tools of strategic thinking and strategic problem solving widely used by economists and other social scientists. After completing this course you will be able reason formally and model strategic decision makers in a variety of economic contexts.
ILO: Module-specific skills
- 1. Develop formal mathematical reasoning abilities.
- 2. Formally model strategic interactions.
- 3. Formally describe suitable equilibrium outcomes of the strategic interactions.
- 4. Analytically solve models of games.
ILO: Discipline-specific skills
- 5. Critically evaluate frontier research in game theory and its applications.
- 6. Develop formal modelling abilities of core economic phenomena.
- 7. Theoretically build and solve formal models of economic phenomena requiring strategic reasoning.
ILO: Personal and key skills
- 8. Develop formal reasoning abilities and engage in abstract thinking.
- 9. Recognise and model strategic interactions.
Learning activities and teaching methods (given in hours of study time)
|Scheduled Learning and Teaching Activities||Guided independent study||Placement / study abroad|
|27 hours||123 hours|
Details of learning activities and teaching methods
|Category||Hours of study time||Description|
|Scheduled learning and teaching activities||22||Lectures (2 hours per week)|
|Scheduled Learning and Teaching||5||Tutorials (1 hour per week)|
|Guided Independent Study||55 (5 per week)||Reading|
|Guided Independent Study||68 (approx. 6 per week)||Preparing problem set answers and preparing for examinations and preparing for examinations|
|Form of assessment||Size of the assessment (eg length / duration)||ILOs assessed||Feedback method|
|Problem sets (2 over the course of the term)||10 questions per problem set||1-9||Oral/written(ELE)|
Summative assessment (% of credit)
|Coursework||Written exams||Practical exams|
Details of summative assessment
|Form of assessment||% of credit||Size of the assessment (eg length / duration)||ILOs assessed||Feedback method|
|Midterm exam||25||90 minutes|
|Problem set||25||10 questions|
|Problem set||25||10 questions|
Details of re-assessment (where required by referral or deferral)
|Original form of assessment||Form of re-assessment||ILOs re-assessed||Timescale for re-assessment|
|Mid- Term, Problem Sets and Examination||Examination (3 hours)) 100%||1-9||Aug/Sep|
- Static game theory with complete information: Nash Equilibrium:
- Static Game Theory with Incomplete Information: Bayesian Nash Equilibrium
- Dynamic Game Theory with complete information: Subgame Perfect Equilibrium
- Dynamic Game Theory with incomplete information: Sequential Equilibrium
- Repeated Games
- Signalling Games
- Strategic Information Transmission
- Behavioural Game Theory
Indicative learning resources - Basic reading
Microeconomic Theory, Mas-Colell, A , Whinston, M.D and Green, OUP USA, 1995.
Game Theory, Fudenberg and Tirole, ANE Books, 2009.
Game Theory, Maschler, Solan and Zamir, Cambridge University Press, 2013.
Economics and the Theory of Games, Fernando Vega-Redondo, Cambridge University Press, 2010.
Theory of Learning in Games, Fudenberg and Levine, MIT Press, 1998.
Module has an active ELE page?
Indicative learning resources - Web based and electronic resources
Indicative learning resources - Other resources
Last revision date