Full course description
This course serves as the foundation in microeconomic theory and game theory. As such the course introduces the necessary tools to model both individual and strategic decision environments. The main topics include consumer theory (utility maximization and choice under uncertainty) as well as introducing students to static games of complete information, dynamic games of complete information, static games of incomplete information and dynamic games of incomplete information. For each class of games, the appropriate equilibrium concept is defined.
Students will learn the necessary analytical tools in order to solve problems related to consumer utility maximization and choice under uncertainty, as well as to analyse and solve strategic decision problems involving firms and individuals.
Intermediate Microeconomics at level of Hal Varan's "Intermediate Microeconomics: A Modern Approach" and basic calculus. The ideas and methods developed in the course will be used and deepened in the courses Strategic Firm Behaviour & Competition Policy (EBC4194) Economics @work (EBC4196), Human Behaviour & Economic Policy (EBC4202) and Negotiation & Allocation (EBC4193).
For consumer theory, books such as:
- Walter Nicholson and Christopher Snyder (2008) "Microeconomic Theory: Basic Principles and Extensions," 10th edition, Thomson South- Western.
- Hal Varian (1992) "Microeconomic Analysis", 3rd edition, Norton.
- Geoffrey Jehle and philip Reny (2011) "Advanced Microeconomic Theory", 3rd edition, Prentice Hall
For game theory, books such as:
- Robert Gibbons (1992) "A Primer in Game Theory," Prentice Hall.
- Martin Osborne(2004) "An Introduction to Game Theory," Oxford Uiversity Press.
- D. Karos