Advanced Microeconomics is an advanced course that teaches selected fundamental topics in microeconomics in more detail. The course starts with an introduction to relations and preference relations, leading to a model of decision-making under risk. It then turns to welfare economics and studies social welfare functions, continuing with utilitarianism and Pareto efficiency. We consider the problem of mechanism design, using a public goods game and auctions as an example. After introducing the Vickrey-Clarke-Groves mechanism, we turn to second-best mechanisms and finally to market mechanisms.
|Dienstag||05.03.2019||10:00 - 13:00||TC.5.16|
|Dienstag||12.03.2019||10:00 - 13:00||TC.5.16|
|Dienstag||19.03.2019||10:00 - 13:00||TC.5.16|
|Dienstag||26.03.2019||10:00 - 13:00||TC.5.16|
|Dienstag||02.04.2019||10:00 - 13:00||TC.5.16|
|Dienstag||09.04.2019||10:00 - 13:00||TC.5.16|
|Dienstag||07.05.2019||10:00 - 13:00||TC.5.16|
|Dienstag||14.05.2019||10:00 - 13:00||TC.5.16|
|Dienstag||21.05.2019||10:00 - 13:00||TC.5.16|
|Dienstag||28.05.2019||10:00 - 13:00||TC.5.16|
|Dienstag||04.06.2019||10:00 - 13:00||TC.5.16|
|Dienstag||18.06.2019||10:00 - 13:00||TC.5.16|
After attending this course, students will be able to:
- understand the reasons for the widespread assumption of expected utility maximization.
- explain the theoretical basics of welfare comparisons and their limits.
- understand the source of inefficiencies arising under incomplete information.
- construct efficient mechanisms to handle social choice problems.
- explain how large markets may eliminate inefficiencies.
The attendance requirement is met, if a student is present at least 80%. Therefore, students are allowed to be absent for up to two classes.
- Lectures with material developed on the whiteboard and supported by slides
- Discussion of examples
Slides and exercises will be uploaded on learn@wu. Students are requested to prepare for each class with the provided material.
There will be a written mid-term exam and a written final exam, each with a weight of 45%. The remaining 10% can be gained by active participation, i.e. by answering questions raised during the course or contributing to the discussion thoughtfully. A retake of one of the written exams will also be offered for those not reaching 50% in total.