Microeconomic Models and Methods is an advanced course that teaches selected fundamental microeconomic models and methods 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.

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 weekly homework exercises (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. A retake of the final exam will also be offered for those not reaching 50% in total.

grading scheme: 0.0-49.9: 5 / 50.0-62.4: 4 / 62.5-74.9: 3 / 75.0-87.4: 2 / 87.5-100.0: 1

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