Economics III - Advanced Microeconomics (Advanced Microeconomics)
This module handbook serves to describe contents, learning outcome, methods and examination type as well as linking to current dates for courses and module examination in the respective sections.
Module version of WS 2011/2
There are historic module descriptions of this module. A module description is valid until replaced by a newer one.
Whether the module’s courses are offered during a specific semester is listed in the section Courses, Learning and Teaching Methods and Literature below.
|available module versions|
|SS 2019||SS 2015||WS 2011/2|
WI000100 is a semester module in German language at Master’s level which is offered in summer semester.
|Total workload||Contact hours||Credits (ECTS)|
|180 h||60 h||6 CP|
Content, Learning Outcome and Preconditions
• Expected Utility Theory
○ Risk Preferences
○ Insurance Markets
i) Adverse Selection
ii) Moral Hazard
• Game Theory
○ Nash Equilibrium
i) in pure and mixed strategies
ii) in simultaneous and sequential games
iii) in one shot and repeated games
○ Strategic Interaction in Oligopolistic Markets
i) Simultaneous and sequential quantity competition (Cournot, Stackelberg)
• to apply expected utility theory in order to describe and evaluate decisions under uncertainty and/or asymmetric information. They will be capable of
○ analyzing the functioning of competitive insurance markets,
○ assessing market failure arising from asymmetric information,
○ solving problems of incentive compatibility.
• to apply game theory in order to analyze strategic interaction. They will be capable of
○ identifying and assessing equilibria,
○ practicing backward induction,
○ analyzing social dilemmas and coordination problems.
• to conceive policy advice und to evaluate concrete policy measures (e.g. in the field of social security or competition policy).
Courses, Learning and Teaching Methods and Literature
Learning and Teaching Methods
- Jehle, Geoffrey and Philip Reny (2011): Advanced Microeconomic Theory, Pearson
- Kreps, David (1990): A Course in Microeconomic Theory, Princeton University Press
- Osborne, Martin (2004): An Introduction to Game Theory, Oxford University Press
- Shy, Oz (1996): Industrial Organization: Theory and Applications, MIT Press
- Zweifel, Peter and Roland Eisen (2012): Insurance Economics, Springer
Description of exams and course work
There is a possibility to take the exam in the following semester.