Advanced Microeconomic Theory 2

Advanced Microeconomic Theory II is a continuation of Advanced Microeconomic Theory, introducing more realism to the analysis of how markets, firms and public authorities work. We discuss market forms such as monopoly, oligopoly, bargaining and auctions. We study the internal operation of firms and organizations. We will acknowledge that peoples’ choices are often interdependent, in the sense that one person’s best choice often depends on what other people do, as well as the fact that people often lack all the information they need to make their decisions. We also study limits to human rationality and the role of pro-social preferences.

The course builds on recent advancements in economic theory and introduces basic game theory, contract theory and behavioral economics. The course is modeled after the Microeconomic II courses typically given in Ph.D. programs.