Advanced Microeconomics

5 Credit points

Short description

The course belongs to the module „Advanced Methods in Business Administration and Economics“.
In this part of the module, students acquire tools from microeconomic theory prevalent in many Master’s field courses of business administration and economics. The course concentrates on three topics: First, choice under uncertainty (expected utility, risk aversion, risk sharing); second, basic tools of game theory (dominance, Nash equilibrium, sequential rationality, Perfect Bayesian Nash equilibrium); third, the economics of asymmetric information (adverse selection, moral hazard, signalling). 

Content

A) Choice under Uncertainty       1. The Expected-Utility Model
                                                             2. Risk Aversion
B) Game Theory Tools                    3. Static Games
                                                             4. Dynamic Games
C) Asymmetric Information          5. Moral Hazard
                                                             6. Adverse Selection

Components and semester hours per week

Lecture (2 semester hours per week) and supplementary study class (1 semester hour per week)

Frequency

Winter semester

Examination performance

Written examination (60 minutes).