Microeconomic Analysis (Theory of Individual Choices, Game Theory)
Theory of individual choice, preference relations and utility functions. Theory of consumer and producer behaviour. Consumption choices under uncertainty. Expected utility. Theory of games in strategic form with perfect and imperfect information. Games in extensive form. Solution concepts: Nash equilibrium, Bayesian equilibrium, sub-game perfect equilibrium, sequential equilibrium.
This first part of the course covers market failures in the presence of externalities, public goods and asymmetric information. The second part covers elements of contract theory and mechanism design, with specific reference to the theory of auctions, together with experimental evidence and a wide variety of economic applications.