MICROECONOMICS 2
Syllabus
Updated A.Y. 2015-2016
Tommaso Valletti, Universita’ di Roma Tor Vergata and Imperial College London
t.valletti@imperial.ac.uk
Main text books:
• Jehle, Geoffrey, and Philip Reny, 2011. Advanced Microeconomic Theory. 3rd ed. Reading, MA: Addison-Wesley [JR]. Please also visit http://alfred.objectis.net/ where you can download the textbook for free.
• Mas-Colell, A., M. D. Whinston and J. R. Green, 1995. Microeconomic Theory. Oxford University Press [MWG].
Supplementary text book:
• Macho-Stadler, I. and J.D. Perez-Castrillo, An Introduction to the Economics of Information, Oxford University Press [MS-PC].
TOPICS
1. Imperfect Competition and Game Theory
• Imperfect Competition [JR 4.2 (you can skip 4.2.3, but please read 4.3.3)]
• Game Theory [JR 7]
2. Information Economics
• Adverse selection, signalling and screening [JR 8.1, MWG 13]
• Applications: education, product quality, insurance [slides]
• Moral hazard and the principal-agent problem [JR 8.2, MWG 14A and 14B]
3. Auctions
• Independent private value [JR 9.1 and 9.2]
EXERCISES TO BE SOLVED IN CLASS (classes are run by Francesco Salustri, francesco.salustri@uniroma2.it)
• JR 4.9, 4.14, 4.15
• JR 7.4, 7.19, 7.27
• MS-PC 4.2, 4.3, 4.7
• MS-PC 5.1, 5.2, 5.5
• MS-PC 3.12, 3.2, 3.6
• Selected questions from previous exams (if time permits)
EXAM
Written exam (for sample questions, please see Teaching material section)
OFFICE HOURS
During the course: Tuesdays 10-11
Outside the course: by appointment