Advanced Microeconomics II (2013‐14)
Course number: ECO601E
Instructor: Yosuke YASUDA (yosuke.yasuda@gmail.com) Teaching Assistant: TBA
Term / Time / Room: Fall 2nd / TBA / TBA
Course web: https://sites.google.com/site/yosukeyasuda/Home/teaching/micro13f_2
1. Course Description
This is an advanced course in microeconomics, succeeding to Advanced Microeconomics I (ECO600E) in which we study individual economic decisions and their aggregate consequences under ideal situations. In this course, we extend our previous analyses to incorporate imperfectly competitive market structures, dynamic market competitions, and incomplete information. To this end, we study game theory, a collection of mathematical tools for analyzing strategically interdependent situations.
2. Course Outline
1. Expected Utility 2. Risk Aversion 3. Monopoly 4. Static Games 5. Mixed Strategies 6. Oligopoly
7. Midterm Exam 90 minutes 8. Dynamic Games
9. Repeated games
10. Incomplete information Games 11. Auction Theory
12. Dynamic Games with Incomplete Information 13. Bargaining and Cooperative Games
14. Social Choice
15. Final Exam 150 minutes
3. Course Grade
Course grade will be determined by combining grades on a midterm exam (40%) and a final exam (60%). Problem sets with solutions will also be distributed.
4. Textbooks
Advanced Microeconomics II does not use specific textbooks. Instead, I provide my own lecture notes, which is downloaded from my course website.
https://sites.google.com/site/yosukeyasuda/Home/teaching/micro13f_2
There are three textbooks that you may find useful to complement my lecture notes. You are encouraged to purchase the first one ([G]); its level and coverage are most appropriate for this course.
[G] Robert Gibbons, Game Theory for Applied Economics, 1992
[NS] Walter Nicholson and Christopher Snyder, Microeconomic Theory: basic principles and extensions, 11th, 2011
[JR] Geoffrey Jehle and Philip Reny, Advanced Microeconomic Theory, 3rd, 2011 The copies of related chapters will be distributed in class.
For introduction to game theory, the following books are recommended:
Avinash Dixit, Susan Skeath, and David Reiley, Games of Strategy, 3rd, 2009 Joel Watson, Strategy, 3rd, 2013
Detailed textbooks at roughly the same level as Gibbons are:
Martin Osborne, An Introduction to Game Theory, 2004 Steven Tadelis, Game Theory: An Introduction, 2012
Those of you interested in pursuing game theory further may consult the advanced and authoritative sources such as:
Drew Fudenberg and Jean Tirole, Game Theory, 1991 Roger Myerson, Game Theory, 1991
Martin Osborne and Ariel Rubinstein, A Course in Game Theory, 1994
(You can download it for free: http://theory.economics.utoronto.ca/books/)
A useful and concise textbook for theoretical analyses on oligopoly markets is:
Luis Cabral, Introduction to Industrial Organization, 2000