Full course descriptionThis 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.
Course objectivesStudents 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.
PrerequisitesIntermediate Microeconomics at the level of Hal Varian's "Intermediate Microeconomics: a modern approach."
Recommended readingFor 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 University Press.