5 credits
30.0 h + 6.0 h
Q1
Teacher(s)
Decerf Benoit; Maniquet François;
Language
English
Main themes
This course, like the second compulsory course in microeconomics, is intended to teach the basics of modeling techniques in microeconomics. The modeling techniques that are covered here are individual decision theory and game theory. In individual decision theory, the emphasis will be on the equivalence between the choice approach and the preference approach to individual decision-making and on the axiomatic derivation of the consequences of rationality assumptions. In game theory, the emphasis will be on modeling interaction situa-tions like games, and on the basic techniques of analyzing games to deduce the equilibrium strategies.
Aims
At the end of this learning unit, the student is able to : | |
| 1 | Students are expected to know the basics of individual decision theory and game theory, and to be able to solve middle level problems in those two fields, which includes mastering the appropriate mathematical techniques. As a result, students are expected to be able to use decision and game theory to model situations of social inter-actions. |
The contribution of this Teaching Unit to the development and command of the skills and learning outcomes of the programme(s) can be accessed at the end of this sheet, in the section entitled “Programmes/courses offering this Teaching Unit”.
Content
The course is composed of 13 three-hour lectures and four tutorials. The contents will be: 1) abstract individual decision theory and the axioms of revealed preferences, economic decision theory and the law of demand, classical demand theory and the dual approaches to demand, rational decision under uncertainty and risk aversion. 2) definition of a game, a strategy, dominant, dominating, undo-minated and rationalizable strategies, Nash equilibrium and the existence theorem, subgame perfection and trembling hand perfection.
Evaluation methods
1) The main evaluation consists of a closed-book exam during the exam session.
2) Bonus points can be awarded during the lectures as a funciton of the active participation of the students and their solution to exercises and problems submitted by the lecturers.
2) Bonus points can be awarded during the lectures as a funciton of the active participation of the students and their solution to exercises and problems submitted by the lecturers.
Other information
Background in economics and mathematics
Written exam, about theory and exercizes
A. Mas-Colell, M. D. Whinston and J. R. Green, 'Microeconomic theory', O.U.P.: New York - Oxford, 1995.
One T. A. is in charge of the tutorials.
Bibliography
- A. Mas-Colell, M. D. Whinston and J. R. Green, 'Microeconomic theory', O.U.P.: New York - Oxford, 1995.
Teaching materials
- A. Mas-Colell, M. D. Whinston and J. R. Green, 'Microeconomic theory', O.U.P.: New York - Oxford, 1995.
Faculty or entity
ECON
