Advanced Microeconomics

Course Instructor

Dr Miyashita, Masaki

Course Description

This course is designed to provide students with the analytical tools required to study economic decisions and strategic behavior at an advanced level. It covers decision theory, game theory, and mechanism design. The course is particularly recommended for students who are considering graduate study in economics.

The first part of the course covers the theory of individual decision making. Most economic theories start from a model of individual decision making and then use it as a building block to model interactions between agents, groups of agents and firms, the economy as a whole, etc. In this part, we will study a suite of standard models, understand some implicit assumptions behind them, and discuss critiques of these models.

The second part of the course covers game theory, which is concerned with analyzing strategic interactions among individuals. Game theory seeks to provide models of conflict and cooperation that are relevant in a large class of situations basic to almost all social sciences. It offers insight into economic, political or social situations in which individuals have different goals and preferences. The basic assumptions of game theory are that decision-makers pursue well defined bjectives (they are rational) and take into account their knowledge or expectations of other decision-makers' behavior (they are strategic).

The third part of the course covers topics in mechanism design, which explores how to apply game-theoretic concepts studied insofar to design institutions. Mechanism design is the study of how to design rules or mechanisms to achieve the social planner’s desired objectives in strategic situations where individuals act rationally. This understanding is crucial for designing effective institutions in many areas, such as auctions, voting systems, and contracts, which are relevant to real-world situations.

Course Learning Outcomes

CLO1: Demonstrate understanding of models and key issues related to decision-making processes.

CLO2: Demonstrate ability to reproduce proofs of standard results in microeconomics.

CLO3: Explain the intuitive perspectives and results of the models covered.

CLO4: Recognize the strengths and limitations of standard models.

CLO5: Apply mathematical tools proficiently to solve models.

Course Prerequisite(s)

ECON2210 Intermediate Microeconomics

Offering Semester in 2023-2024

First Semester

Major/Minor (Course Category)

Major in Economics (Disciplinary Elective)

Minor in Economics (Disciplinary Elective)