ADVANCED MICROECONOMICS - 2017/8

Module code: ECOM048

Module provider

Economics

Module Leader

CARMONA GM Prof (Economics)

Number of Credits

15

ECT Credits

7.5

Framework

FHEQ Level 7

JACs code

L120

Module cap (Maximum number of students)

N/A

Module Availability

Semester 2

Overall student workload

Independent Study Hours: 128

Lecture Hours: 22

Assessment pattern

Assessment type Unit of assessment Weighting
School-timetabled exam/test IN-SEMESTER TEST - 1 HOUR 25%
Examination EXAMINATION - 2 HOUR 75%

Alternative Assessment

Not applicable

Prerequisites / Co-requisites

None.

Module overview

Perhaps the most significant development in microeconomics in the last forty years has been the attempt to deal with market failures caused by asymmetric information and strategic behaviour. The importance of these developments is apparent from the Nobel prizes that have been awarded to game theorists and information economists. This module is designed to cover the central topics related to markets and interactions with asymmetric information.

Studying this module will help you to apply and extend your knowledge of microeconomic theory. You will learn about the effects of asymmetric information and strategic behaviour on the outcomes of market interactions.

Module aims

To familiarise students with advanced conceptual and appropriate mathematical tools in microeconomic theory.

Learning outcomes

Attributes Developed
Analyse games of incomplete information and apply the obtained tools in other parts of the course KC
Understand market failures due to asymmetric information (adverse selection) and potential and partial remedies (signalling and screening KC
Understand the basis of contract theory and the inefficiencies which are generated by unobservable actions and unobservable information KC
Understand potential failures in public good markets and markets with externalities KC
Understand basic social choice theory: to derive satisfactory objectives for the policy maker while taking into account obstacles in aggregation of individual preferences KC

Attributes Developed

C - Cognitive/analytical

K - Subject knowledge

T - Transferable skills

P - Professional/Practical skills

Module content

Indicative content includes:


Game theory
Adverse Selection
Signalling
Screening
Principal-Agent Problem

Methods of Teaching / Learning

The learning and teaching strategy is designed to: enhance skills in formal analysis of strategic decision making in markets with incomplete information. Moreover, a basis is laid for the effective evaluation of markets outcomes.

The learning and teaching methods include:


2 hour lecture per week x 11 weeks

Assessment Strategy

The assessment strategy is designed to provide students with the opportunity to demonstrate their understanding of individual decision making in strategic environments with incomplete information and of assessing market outcomes.

Thus, the summative assessment for this module consists of:



An in-semester test unit typically scheduled in week 7 will examine analytical tools and understanding of the material covered in the first part of the module.This benefits students by consolidating their knowledge and allowing them to plan how to deal with the demands of the final examination


Final examination of two hours consisting of two or three questions that will examine analytical tools and skills obtained during the module. Scheduled in weeks 13-15.



Formative assessment and feedback

Students will receive verbal feedback during the lectures through direct interaction.

Before each coursework test, students will be given a list of sample questions, similar, in their complexity, to the questions at the test itself, and will be encouraged to ask questions. After the class test, each student will receive their own script back with comments and a written indicative marking scheme so that they can judge their own performance and prepare for the final exam.

Reading list

Reading list for ADVANCED MICROECONOMICS : http://aspire.surrey.ac.uk/modules/ecom048

Please note that the information detailed within this record is accurate at the time of publishing and may be subject to change. This record contains information for the most up to date version of the programme / module for the 2017/8 academic year.