Microeconomic Analysis (Theory of Individual Choices, Game Theory)

Instructor: Luca Panaccione, Marco Spallone

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.

Advanced Microeconomics (Auction Theory, The Economics of Information)

Instructor: Gian Luigi Albano, Eloisa Campioni
Competitive biddings and markets. Auctions. Applications to privatizations and procurement auctions. Moral hazard and adverse selection in a static framework, and possibly some extensions to dynamics. Applications of the theory include: credit rationing, investment and financial decisions under adverse selection, signalling through dividend payments, managerial incentive schemes and the optimality of debt financing under moral hazard.