Microeconomics II
Content
Objective
This course is an introduction to microeconomic theory designed to meet the needs of students who will apply to economics doctoral programs.
Course Content
In the first part of this course, individual decision making was studies. In the second part, the course discusses how to design the interaction between individuals in order to achieve the desired outcomes and choices in collective decision making situations. The study of collective decision making starts first with social choice and voting mechanisms, then mechanism design and auctions are discussed. The course ends with the introduction of social networks.
Course Learning Outcomes
The student who succeeds in the course is supposed to acquire the following:
- analysis of electoral systems and problems related to those
- introduction to mechanism design
- introduction to auctions and optimal auctions
- introduction to network theory
Teaching and Learning Methods
Throughout the course, concepts and methods are taught by explaining and analysing models and applying them through assignments.
References
Yoav Shoham and Kevin Leyton-Brown, Multiagent Systems: Algorithmic, Game-Theoretic, and Logical Foundations Cambridge University Press, 2009.
Matthew O. Jackson A Brief Introduction to the Basics of Game Theory.
Matthew O. Jackson (2008) Social and Economic Networks, Princeton University Press
Weekly Contents
| Week | Weekly Contents |
|---|---|
| 1 | I. Introduction to social choice and voting schemes |
| 2 | a. Problems in collective decision making |
| 3 | b. Arrow theorem |
| 4 | II. Mechanism design - Examples |
| 5 | a. Revelation principle |
| 6 | b. Gibbard-Satterthwaite and Muller-Satterthewaite theorems |
| 7 | c. Transferable utility and mechanism design as an optimisation problem |
| 8 | Midterm |
| 9 | d. Vickrey-Clarke-Growes mechanism (examples and limitations) |
| 10 | III. Introduction to auctions |
| 11 | a. Strategic behaviour in auctions |
| 12 | b. Revenue equivalence theorem |
| 13 | IV. Social networks |
| 14 | Erdos-Renyi graphs |
Assessment System
| Activities | Number | Contribution |
|---|---|---|
| Contribution of in-term studies to overall grade | 8 | 60 |
| Contribution of final exam to overall grade | 1 | 24 |
| Total | 9 | 84 |
| Activities | Number | Contribution |
|---|---|---|
| Assignments | 6 | 10 |
| Presentation | 1 | 10 |
| Midterm Examinations (including preparation) | 1 | 40 |
| Project | 0 | 0 |
| Laboratory | 0 | 0 |
| Other Applications | 0 | 0 |
| Quiz | 0 | 0 |
| Term Paper/ Project | 0 | 0 |
| Portfolio Study | 0 | 0 |
| Reports | 0 | 0 |
| Learning Diary | 0 | 0 |
| Thesis/ Project | 0 | 0 |
| Seminar | 0 | 0 |
| Other | 0 | 0 |
| Total | 8 | 60 |
ECTS
| Activities | Number | Period | Total Workload |
|---|---|---|---|
| Class Hours | 13 | 3 | 39 |
| Working Hours out of Class | 13 | 3 | 39 |
| Assignments | 6 | 5 | 30 |
| Presentation | 1 | 10 | 10 |
| Midterm Examinations (including preparation) | 1 | 10 | 10 |
| Final Examinations (including preparation) | 1 | 10 | 10 |
| Total Workload | 138 | ||
| Total Workload / 25 | 5.52 | ||
| Credits ECTS | 6 | ||