Valid for: 2018/19
Decided by: PLED I
Date of Decision: 2018-03-20
Depth of study relative to the degree requirements: Second cycle, has only first-cycle course/s as entry requirements.
Elective for: I4, Pi4-fm
Language of instruction: The course will be given in English
The aim of the course is to give the student an introduction into advanced microeconomics. The emphasis is on industrial organization and game theory.
Knowledge and understanding
For a passing grade the student must
• deepen their knowledge of the theory of decision making
under uncertainty, and obtain knowledge in game theory and
industrial organisation including theories of monopoly, oligopoly
and contracts,
• be able to translate competitive situations as well as other
economic and social interaction problems into formalised games,
• be able to describe practically encountered incentive problems
in terms underlying information asymmetries and, aided by this
classification, be able to analyse them and suggest solutions,
• develop a command of the basic theory of decision making under
risk in such a way that they will be able to explain the role
played by the consistency requirements, including the "independence
axiom".
Competences and skills
For a passing grade the student must
Judgement and approach
For a passing grade the student must
Students shall have a command of the course contents so that they will be able to deepen their knowledge by independently studying more advanced literature and scientific articles written at a reasonably technical level.
The course presents modern microeconomic theory and a set of
applications. The applications considered include:
• the theory of economic decision making under risk and
uncertainty, including the important notions of risk aversion and
stochastic dominance,
• non-cooperative game theory and the basic concepts of
dominance, Nash equilibrium, and subgame perfection,
• the theory of monopoly with a classification and advanced
treatment of the most common forms of price discrimination,
• oligopoly theory, developing game theoretic models of
competition in prices and quantities as well as sequential
competition,
• the basic theory of incentive problems created by asymmetric
information about actions or states of nature.
Grading scale: TH - (U,3,4,5) - (Fail, Three, Four, Five)
Assessment: Written exams take place at the end of the course. There will be further opportunities for examination close to this date. In addition there are some optional home exercises that will be graded, and the marks carried forward to examinations taken the same term.
Grading is according to the LTH scale (failed, 3, 4, 5). 5: 84–100%, 4: 66–83%, 3: 50–65%, U: 0–49%.
The examiner, in consultation with Disability Support Services, may deviate from the regular form of examination in order to provide a permanently disabled student with a form of examination equivalent to that of a student without a disability.
The number of participants is limited to: 15
Selection: Priority is given to students in Engineering Mathematics if the course is part of their specialization. Selection is made on credits remaining for the degree.
The course overlaps following course/s: NEKN21
Course coordinator: Alexandros Rigos, alexandros.rigos@nek.lu.se
Course coordinator: Alessandro Martinello, alessandro.martinello@nek.lu.se
Course homepage: http://Course webpage is in Live@Lund
Further information: The course is to be studied together with NEKN2, which is given by the Department of Economics.