Microeconomic Theory II
| Module title | Microeconomic Theory II |
|---|---|
| Module code | BEEM140 |
| Academic year | 2019/0 |
| Credits | 15 |
| Module staff | Dr Edwin Ip (Convenor) |
| Duration: Term | 1 | 2 | 3 |
|---|---|---|---|
| Duration: Weeks | 11 |
| Number students taking module (anticipated) | 12 |
|---|
Module description
This is the second module in microeconomic theory. You will study rational strategic decision making, i.e. game theory in static and dynamic contexts, both with and without complete information. After developing the tools to theoretically analyse core games, you will study applications to bargaining, auctions, signaling games, strategic information transmission, repeated games, issues of reputation and market design. This will be complemented by understanding the actual behavior of decision makers in strategic settings, i.e. behavioural game theory.
Module aims - intentions of the module
The aim of the module is to develop formal reasoning abilities and apply tools of strategic thinking and strategic problem solving widely used by economists and other social scientists. After completing this course, you will be able to reason formally and model strategic decision makers in a variety of economic contexts.
Intended Learning Outcomes (ILOs)
ILO: Module-specific skills
On successfully completing the module you will be able to...
- 1. develop formal mathematical reasoning abilities.
- 2. formally model strategic interactions.
- 3. formally describe suitable equilibrium outcomes of the strategic interactions.
- 4. analytically solve models of games.
ILO: Discipline-specific skills
On successfully completing the module you will be able to...
- 5. critically evaluate frontier research in game theory and its applications.
- 6. develop formal modelling abilities of core economic phenomena.
- 7. theoretically build and solve formal models of economic phenomena requiring strategic reasoning.
ILO: Personal and key skills
On successfully completing the module you will be able to...
- 8. develop formal reasoning abilities and engage in abstract thinking.
- 9. recognise and model strategic interactions.
Syllabus plan
• Static game theory with complete information: Nash Equilibrium:
• Static Game Theory with Incomplete Information: Bayesian Nash Equilibrium
• Dynamic Game Theory with complete information: Subgame Perfect Equilibrium
• Dynamic Game Thoery with incomplete information: Sequential Equilibrium
• Repeated Games
• Bargaining
• Auctions
• Signalling Games
• Strategic Information Transmission
• Reputation
• Behavioural Game Theory
Learning activities and teaching methods (given in hours of study time)
| Scheduled Learning and Teaching Activities | Guided independent study | Placement / study abroad |
|---|---|---|
| 32 | 118 | 0 |
Details of learning activities and teaching methods
| Category | Hours of study time | Description |
|---|---|---|
| Scheduled Learning and Teaching | 22 | Lecturers (2 hours per week) |
| Scheduled Learning and Teaching | 10 | Tutorials (1 hour per week) |
| Independent Study | 118 | Independent study |
Formative assessment
| Form of assessment | Size of the assessment (eg length / duration) | ILOs assessed | Feedback method |
|---|---|---|---|
| Problem sets (2 over the course of the term) | 10 questions per problem set | 1-9 | Oral, and written(ELE) |
Summative assessment (% of credit)
| Coursework | Written exams | Practical exams |
|---|---|---|
| 50 | 50 | 0 |
Details of summative assessment
| Form of assessment | % of credit | Size of the assessment (eg length / duration) | ILOs assessed | Feedback method |
|---|---|---|---|---|
| Midterm Exam | 25 | 1 hour | 1-9 | Oral and written feedback(ELE) |
| Problem Set | 25 | 10 questions | 1-9 | Oral and written feedback(ELE) |
| Problem Set | 25 | 10 questions | 1-9 | Oral and written feedback(ELE) |
| Examination | 25 | 1 hour | 1-9 | Written |
Details of re-assessment (where required by referral or deferral)
| Original form of assessment | Form of re-assessment | ILOs re-assessed | Timescale for re-assessment |
|---|---|---|---|
| Mid Term | Exam (1 hour) 25% | 1-9 | Aug/Sep |
| Problem Set | Problem set (10 questions) 25% | 1-9 | July |
| Problem Set | Problem set (10 questions) 25% | 1-9 | July |
| Examination | Examination (1 hour) 25% | 1-9 | Aug/Sep |
Indicative learning resources - Basic reading
Microeconomic Theory, Mas-Colell, A , Whinston, M.D and Green, OUP USA, 1995.
Game Theory, Fudenberg and Tirole, ANE Books, 2009.
Game Theory, Maschler, Solan and Zamir, Cambridge University Press, 2013.
Economics and the Theory of Games, Fernando Vega-Redondo, Cambridge University Press, 2010.
Theory of Learning in Games, Fudenberg and Levine, MIT Press, 1998.
| Credit value | 15 |
|---|---|
| Module ECTS | 7.5 |
| Module pre-requisites | BEEM137 |
| Module co-requisites | None |
| NQF level (module) | 7 |
| Available as distance learning? | No |
| Origin date | 04/04/2016 |
| Last revision date | 20/08/2019 |