Advanced Microeconomics (ES30025)
Lecture Notes
Part One: The Economics of Information
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
Maths Review 1 – Rules of Differentiation
Maths Review 2 – The Lagrange Multiplier
Maths Review 3 – Monotonic Transformations
Problem Sets
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
January 2006
January 2007
January 2008
January 2009
January 2010
January 2011
January 2012
References
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.
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. 355-374.
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