UCL - Advanced Microeconomics II: General Equilibrium and Mechanism Design

[ECON2112]

[30h + 6h] 5 credits

Teacher(s): Claude d'Aspremont-Lynden

Language: English

Level: Second

Aims
Main themes
Content and teaching methods
Other information (prerequisite, evaluation (assessment methods), course materials recommended readings, ...)

Aims

The objective of the course is to provide the basic microeconomic tools to be used in the analysis of problems of resource allocation by economists working in research, in businees or in various organisations. The course adopts both a positive and a normative approach. It includes recent advances of the theory and aims at develop-ing the capacity to apply economic concepts to real-world problems.

Main themes

Building upon the tools of decision and game theory acquired in Advanced Microeconomics I, the course is divided in two main sections. In the first section, General Competittive Analysis is developed both in its positive and normative dimensions. In the second section, the problem of designing efficient allocation mechanisms is studied in a general perspective. Incomplete information and incentives issues are introduced. The design of auctions and public good mechanisms is included.

Content and teaching methods

After reviewing classical demand theory, general equilibrium theory is studied at an advanced level. Informa-tional aspects will be stressed. Then mechanism design and implementation theory are introduced and applied to auctions and public good provision. The basic reference is the book by Andreu Mas-Colell, Michael Whinston, and Jerry R. Green. Microeconomic Theory. Oxford University Press, 1995 (mainly, chapters 3, 15-17 and 23).

Other information (prerequisite, evaluation (assessment methods), course materials recommended readings, ...)

Basic notions of decision and game theory as given in Advanced Microeconomics I.

Exercises and homeworks are assigned to students and a feedback on solutions is provided during the course. A written examination is required at the end.

The basic reference is the book by Andreu Mas-Colell, Michael Whinston, and Jerry R. Green. Microeco-nomic Theory. Oxford University Press, 1995 (mainly chapters 3, 15-17 and 23)