Advanced Microeconomics II

This course covers advanced microeconomic models, and strategic decision-making and interactions. Students will be taught solid grounds in game theory and in the analysis of non-cooperative games. The course will cover games with complete and incomplete information, as well as games with finite and infinite horizon. Students will be made familiar with various topics in auctions and mechanism design. Emphasis will be made not only on the mathematical formulation of the problems, but also on the related economic meaning (and intuition).

 A detailed list of the topics addressed is as follows:

• Game theory: Strategic decision making; Strategic form games; Extensive form games

• Information economics: Adverse selection; Moral hazard, principal-agent problem; Information and market performance

• Auctions and mechanism design: Four standard auctions; Independent private values model; Revenue equivalence theorem; Designing a revenue maximizing mechanism; Designing allocatively efficient mechanisms

• Provide students with a solid foundation in microeconomic theory, using mathematical techniques.
• Provide students with a deeper knowledge 

  game theory and strategic decision-making.

• Provide students with a deeper knowledge in information economics and informational issues, as well as topics related to mechanism design and auctions.
• This course is required for students aiming at deepening their knowledge in Microeconomics, with an aim to pursue a career as economists in firms or organizations, or in a PhD program.

Thu., 8.15 - 9.45am

All lectures and tutorials will be held in person this semester

• Strong command of intermediate microeconomics. The following text is suitable for preparation: M. J. Osborne and A. Rubinstein: Models in Microeconomic Theory, Open Book Publishers, 2020 (electronic version freely available on the publisher’s website)

Main reference:

• G. A. Jehle and P. J. Reny, Advanced Microeconomic Theory, FT Press, 3rd ed. 2010.

Other references:

• Mas-Colell, M. D. Whinston and J. R. Green, Microeconomic Theory, Oxford University Press, 1995.

• H. R. Varian, Microeconomic Analysis, W. W. Norton & Company, 3rd ed. 1992.

• M. J. Osborne, An Introduction to Game Theory, Oxford University Press, International ed. 2009.

• R. Gibbons, A Primer in Game Theory, Pearson Higher Education, 1992.

• Rubinstein, A., Lecture Notes in Microeconomic Theory, Princeton University Press, 2016. (Freely available on the author's website).

• D. M. Kreps, Microeconomic Foundations I: Choice and Competitive Markets, Princeton University Press, 2012.

Available on ILIAS: https://ilias.uni-freiburg.de/goto.php?target=crs_3043164&client_id=unifreiburg

Password: AMII-2023