Microeconomics II

Module Code: EEC7002

• ECTS Credit: 10
• Mandatory/Optional: Mandatory
  
• Module Coordinator: Prof Tara Mitchell, Prof Francis O'Toole

Aims of Module

(a) The first half of this module will introduce studetns to the economics of information. It will build on the concepts introduced in the second half of the Microeconomics I module and apply them to various real-world topics

(b) The second half of this module will focus on Industrial Organisation Theory with a focus on applied topics involving competition policy and regulation.

Module Delivery

The module will be delivered through a combination of lectures (18 hours) and tutorials (9 hours). Problems are circulated at the lectures, and brought to class for submission and analysis.

Learning Outcomes

On completion of the module students should be able to use game-theoretic tools to solve problems with asymmetric information and to use a game-theoretic approach to address competition and regulatory issues/problems.

Syllabus

Topics covered in this module include:

Part A

1. Repeated games and cooperative game theory
2. Adverse Selection, Signalling and Screening
3. The Principal Agent Problem
4. Mechanism Design and Auctions

Part B

1. Horizontal Mergers
2. Resale price maintenance
3. Exclusivity agreements
4. Regulation

Assessment

Assessment for the course is based on weekly problem sets and one 3-hour examination.

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