The aim of the course is to introduce students to the most essential topics in microeconomic theory and to provide a broad grounding for the more detailed analysis that is required in subsequent optional courses. Theory-oriented lectures will be accompanied by a series of tutorial classes in which problem sets will be discussed.
By the end of the course students will be familiar with the following topics: Consumer behaviour and the principles of rational choice. Representations of technology, profit maximisation and firm behaviour. Intertemporal choice. Decision making under uncertainty. General competitive equilibrium. Introduction to game theory under complete and incomplete information, with applications to oligopoly. Perfect competition as a limiting case. Private information in markets. Basic auction theory. General theory of markets with adverse selection. Contract design in the context of moral hazard problems.
|Taught by:||Konrad Mierendorff, Suehyun Kwon|
|Assessment:||Three hours of lectures per week, one practical demonstration lecture, and one weekly tutorial class throughout Term 1. Three-hour closed-book examination in Term 3. Assessment is based solely on the final examination, but a serious attempt at the problems is essential to a good understanding of the material.|
|Suitable for:||Graduate students|
|Prerequisites:||Economics Department Approval|