Module

Microeconomic Theory II

Module description

This is the second module in microeconomic theory. You will study rational strategic decision making, i.e. game theory in static and dynamic contexts, both with and without complete information, and repeated games. After developing the tools to theoretically analyse strategic behaviours, you will study the design of incentive structures in strategic settings: i.e. principal-agent problems, auctions, mechanism design and market design.

Full module specification

Module title:Microeconomic Theory II
Module code:BEEM140
Module level:M
Academic year:2020/1
Module lecturers:
  • Dr Edwin Ip - Convenor
Module credit:15
ECTS value:

7.5

Pre-requisites:

None

Co-requisites:

None

Duration of module: Duration (weeks) - term 2:

11

Module aims

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 to 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 ActivitiesGuided independent studyPlacement / study abroad
321180

Details of learning activities and teaching methods

CategoryHours of study timeDescription
Scheduled Learning and Teaching22Lecturers (2 hours per week)
Scheduled Learning and Teaching10Tutorials (1 hour per week)
Guided Independent Study118Reading, research, preparation for tutorials, lectures and assignments

Formative assessment

Form of assessmentSize of the assessment (eg length / duration)ILOs assessedFeedback method
Assignments (2 over the course of the term)10 questions per assignment1-9Oral, and written (ELE)

Summative assessment (% of credit)

CourseworkWritten examsPractical exams
50500

Details of summative assessment

Form of assessment% of creditSize of the assessment (eg length / duration)ILOs assessedFeedback method
Midterm Exam251 hour1-9Oral and written feedback(ELE)
Assignment 1252000 words1-9Oral and written feedback(ELE)
Assignment 2252000 words1-9Oral and written feedback(ELE)
Examination251 hour1-9Written

Details of re-assessment (where required by referral or deferral)

Original form of assessmentForm of re-assessmentILOs re-assessedTimescale for re-assessment
Mid TermExam (1 hour) 25%1-9August/September Reassessment Period
Assignment 1Assignment (2000 words)1-9July
Assignment 2Assignment (2000 words)1-9July
ExaminationExamination (1 hour) 25%1-9August/September Reassessment Period

Syllabus plan

Decision Making under Risk

Game Theory:

Static game theory with complete information
- Imperfect Competition
Static Game Theory with Incomplete Information
Dynamic Game Theory with complete information
Repeated Games
Dynamic Game Theory with incomplete information

Contract Theory:

Moral Hazard
Adverse Selection

Market Design:

Auctions
Mechanism Design

Indicative learning resources - Basic reading

Useful References:

Microeconomic Theory, Mas-Colell, A , Whinston, M.D and Green, OUP USA, 1995.

Game Theory, Fudenberg and Tirole, ANE Books, 2009.

Advanced Microeconomic Theory (Third Edition), Jehle and Reny, Pearson, 2011

A Course in Game Theory, Osborne and Rubinstein, MIT Press, 1994

Contract Theory, Bolton and Dewatripont, MIT Press, 2005

Module has an active ELE page?

Yes

Origin date

04/04/2016

Last revision date

28/02/2020