Advanced Microeconomics
Unit Code: EFIM3009
- Level: 3
- Credit point value: 20
- Unit Director: Dr Francesco Giovannoni
- Lecturers: Dr Francesco Giovannoni
- Teaching blocks: 1 and 2
- Prerequisites: Intermediate Microeconomics (ECON21133)
- Number of lectures: 18
- Number of tutorials: 9
Unit Description
The unit develops information economics and introduces mechanism design. Topics covered include dynamic incentive problems, bargaining, incentives in teams, mechanism design, auctions and matching markets.
Unit Aims
- To discuss a range of standard economic problems such as market design, bidding in auctions, bargaining, contracting in teams and dynamic contracting.
- To develop further tools and economic concepts introduced in previous microeconomic units and introduce new tools and concepts at the frontier of modern microeconomics research.
- To introduce new game-theoretic methods.
- To emphasize modern approaches to modelling in microeconomics.
Assessment Methods
Summative Assessment
Three-hour closed book exam in May/June (100%).
Formative Assessment
Two assignment lectures.
Main Texts
- Rasmusen, Games and Information (4th Edition), Blackwell
- Jehle and Reny, Advanced Microeconomic Theory, Pearson
- Laffont and Martimort, The Theory of Incentives, Princeton University Press
Syllabus
- Mechanism design and Implementation
- Bargaining under complete and incomplete information
- Auctions with private and common values
- Dynamic contract theory
- Incentive issues in teams
- Contractual incompleteness
- Alternative methods for the valuation of environmental goods
