Advanced Microeconomics I is an advanced course that teaches selected fundamental topics in microeconomics in more detail. The course starts with an introduction to relations and preferences, 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. Finally we consider the topic of mechanism design, using auctions as an example. The material is continued in Advanced Microeconomics II.

1. relations and preference relations

2. ordinal utility functions

3. uncertainty and risk

4. preferences over lotteries

5. expected utility

6. welfare economics

7. social welfare functions

8. Arrow’s theorem

9. efficiency and utilitarianism

10. mechanism design

11. efficient auctions

12. dominant-strategy incentive compatibility

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

There will be several homeworks (weight 30%) and a written final exam (60%). The remaining 10% can be gained by active participation, i.e. by answering questions raised during the course or contributing to the discussion thoughtfully.

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

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

phone: 01/31336-4562