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Economics III - Advanced Microeconomics (Advanced Microeconomics)

Module WI000100

This Module is offered by Chair of Public Finance and Industrial Organization (Prof. Frhr. von Weizsäcker).

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 SS 2015

There are historic module descriptions of this module. A module description is valid until replaced by a newer one.

available module versions
SS 2019SS 2015WS 2011/2

Basic Information

WI000100 is a semester module in German or English language at Master’s level which is offered in summer semester.

Total workloadContact hoursCredits (ECTS)
180 h 60 h 6 CP

Content, Learning Outcome and Preconditions

Content

The module imparts advanced concepts and methods of microeconomics focussing on choice under uncertainty and strategic interaction. It examines markets under asymmetric information and imperfect competition.
• 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)

Learning Outcome

Participation in the module will enable the students
• 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).

Preconditions

WI000021 "Economics I (Microeconomics)" OR WI001056 "Principles of Economics"

Courses, Learning and Teaching Methods and Literature

Courses and Schedule

TypeSWSTitleLecturer(s)Dates
VI 4 Advanced Microeconomics (WI000100) Feilcke, C. Tue, 09:45–11:15, 2750
Wed, 09:45–11:15, 2750
and singular or moved dates

Learning and Teaching Methods

The module consists of a lecture as well as an exercise course. The lecture content will be conveyed to the students by means of verbal presentation. The exercise course aims to encourage students to independently deliberate the presented economic problems, which are discussed in the lecture and in the relevant literature. In the exercise course, participants apply the acquired knowledge by solving exercises and implementing case studies, partially this process takes place in group work. Moreover, concrete issues raised by students are addressed and online polls are conducted at regular intervals. The polls contain multiple-choice questions similar to those presented in the exam and help course participants gauge their level of performance relative to others.

Media

Text books, script, exercises, online polls, videos

Literature

- Gravelle, Hugh and Ray Rees (2004): Microeconomics, Pearson
- 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

Module Exam

Description of exams and course work

Students receive credit for the module after passing a multiple choice exam (written, 120 minutes). Students apply advanced concepts and methods of microeconomics (most notably of expected utility theory and game theory) to concrete decision problems and develop solutions. They show their ability to assess and evaluate decisions under uncertainty and asymmetric information (e.g. on insurance markets) as well as strategic interaction of decision makers (e.g. under oligopolistic competition). Hereby, students demonstrate their capacity for abstraction (thinking in economic models) and concretization (interpreting and applying the results of the model).

Exam Repetition

There is a possibility to take the exam in the following semester.

Current exam dates

Currently TUMonline lists the following exam dates. In addition to the general information above please refer to the current information given during the course.

Title
TimeLocationInfoRegistration
Advanced Microeconomics
Thu, 2020-02-13, 13:30 till 15:30 1180
1100
till 2020-01-15 (cancelation of registration till 2020-02-06)
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