Advanced Microeconomics II continues Advanced Microeconomics I. It is an advanced course that teaches selected fundamental topics in microeconomics in more detail. The course starts with mechanism design, using a public goods game and auctions as primary examples. After introducing the Vickrey-Clarke-Groves mechanism we turn to second-best mechanisms and finally to market mechanisms.

1. public goods

2. the VCG mechanism

3. balanced budgets

4. second-best mechanisms

5. bilateral trade

6. Myerson-Satterthwaite theorem

7. competition

8. double auctions

9. markets

10. large public goods

11. auctions and profit maximization

12. competitive markets

The attendance requirement is met, if a student is present at least 80%. Therefore, students are allowed to be absent for one teaching unit.

Advanced Microeconomics II is the continuation of Advanced Microeconomics I. It is formally possible to only complete the second course (e.g. for exchange students who need just 4 ECTS), but it would be difficult and doesn't make much sense.

Students should have a good knowledge of introductory microeconomics and game theory, and they should have completed Advanced Microeconomics I. The most important requirement, however, is the willingness to engage with formal (axiomatic) reasoning and proofs.

There will be three short quizzes (20%) and a written final exam (70%). 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 the final exam will also be offered for those not reaching 50% in total.

e-mail: ulrich.berger@wu.ac.at

phone: 01/31336-4562