Course Description (Winter 2019-2020)
Economics 411 Topics in Microeconomic Theory
Instructor: Ruqu Wang
Dunning Hall, Room 304, firstname.lastname@example.org, 613-533-2272
Office Hours: Tuesdays, 10:30-11:30am
Teaching Assistant: Yiran Gong
Dunning Hall, Room 321, email@example.com
Office Hours: Wednesday, 1:00-2:30pm
Please click here for announcements and assignments. (Updated January 17, 2020)
In this course, we examine important topics in microeconomics. The topics for this year are games of asymmetric information and their applications in auctions, mechanism design, and contracts. We first discuss game theory concepts, such as Nash equilibrium, subgame-perfect equilibrium, Bayesian equilibrium, perfect Bayesian equilibrium, and then apply them to auctions, optimal auctions, signaling, adverse selection, moral hazard, and incentive contracts. Course materials consist of lecture notes and papers from the literature.
class participation -- 10%
homework -- 20%
Quiz #1 -- 35%
Quiz #2 -- 35%
Quiz #1: Friday, February 28, 2020, in class
Quiz #2: Friday, April 3, 2020, in class
Required textbooks: None.
#1. Strategies and Games : Theory and Practice, by Dutta, Prajit K., MIT Press, 1999.
#2. Auction Theory, by Vijay Krishna, 2nd Edition, Academic Press, 2010.
#3. Contract Theory, by Bolton and Dewatripont, Cambridge, MA: MIT Press, 2005.
(This is our plan; what will be covered may vary.)
1. Review of Basic Game Theory
Pure strategies, mixed strategies, dominated and dominant strategies, static games, Nash equilibrium, dynamic games, subgame-perfect equilibrium
2. Games of Asymmetric Information
Bayesian equilibrium, perfect Bayesian equilibrium
3. Signaling Games
Separating equilibrium, pooling equilibrium
4. Auctions, Mechanism Design
Private values, common values, winner’s curse, English auctions, Dutch auctions, first-price and second price auctions, optimal auctions
5. Adverse Selection, Moral Hazard, Contracts
Lemon’s problem, insurance, incentives
Please note: The material on this website is copyrighted and is for the sole use of students registered in this course. The material on this website may be downloaded for a registered student’s personal use, but shall not be distributed or disseminated to anyone other than students registered in this course. Failure to abide by these conditions is a breach of copyright, and may also constitute a breach of academic integrity under the University Senate’s Academic Integrity Policy Statement.