Advanced Microeconomics (ES30025)
Lecture Notes
Part One: The Theory of Games
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Topic 1: Introduction to Game Theory (i), (ii), (iii)
Topic 2: Application 1 - Bargaining (i) (ii) (iii) (iv); Bill&Sally – excel spreadsheet
Topic 3: Application 2 – Auctions
Part Two: The Economics of Information
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Topic 1: Insurance and the Market for State Contingent Wealth (i), (ii), (iii)
Topic 2: Principal-Agent Theory and the Separation of Ownership and Control
Topic 3: Signalling and Screening (i), (ii)
Maths Review
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Maths Review 1 – Rules of Differentiation
Maths Review 2 – The Lagrange Multiplier
Maths Review 3 Monotonic Transformations
Problem Sets
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Questions 1; Solutions 1
Questions 2; Solutions 2
Questions 3; Solutions 3
Questions 4; Solutions 4
Questions 5; Solutions 5
Questions 6; Solutions 6
Questions 7; Solutions 7
Past Exam Papers
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January 2006
January 2007
January 2008
January 2009
January 2010
January 2011
January 2012
References
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Reading List
Akerlof, G. A. (1970). ‘The Market for ‘Lemons’: Quality Uncertainty and the Market
Mechanism.’ Quarterly Journal of Economics, 84(3), pp. 488-500.
Brown, S. and J. G. Sessions. (2005).‘Signalling and Screening.’ In G. Johnes and J. Johnes
(eds), International Handbook on the Economics of Education. (Edward Elgar:
Cheltenham). 2005.
Crawford, V. P. (2002).’John Nash and the Analysis of Strategic Behaviour.’ Economics
Letters, 75(3), pp. 377-382.
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Back
Nash, J. (1950). ‘The Bargaining Problem.’ Econometrica, 18(2), pp. 155-162.
Nash, J. (1953). ‘Two Person Cooperative Games.’ Econometrica, 21(1), pp. 128-140.
Rubinstein, A. (1995). ‘John Nash: The Master of Economic Modeling.’ Scandinavian
Journal of Economics, 97(1), 9-13, 1995.
Rubinstein, A. (2003). ‘John Nash: A Beautiful Mind and Game Theory.’ Lecture to
Department of Economics, Georgetown University.
Rubinstein, A. (2004). Dilemmas of an Economic Theorist.’ Presidential Address,
Econometric Society.
Sessions, J. G. (1993). ‘An Interpretative Note on the Nature of the Wage Curve.’
Scandinavian Journal of Economics, 95(2), 239-244, 1993.
Spence, M. (1973). ‘Job Market Signalling.’ Quarterly Journal of Economics, 87(3), pp. 355374.