Microeconomics 1 (Part B)

Contact

Andy Zapechelnyuk (Andy.Zapechelnyuk@ed.ac.uk)

Office: 31 Bucchleuch Place, Room 4.01 (top floor)

Office hours: Monday 22nd April 1-2pm; Tuesday 30th April 10:30-11:30am & 1-2pm.

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Course Materials for Part B

Textbooks:

• Mas-Colell, Whinston, and Green (1995) “Microeconomic Theory” (MWG) - Main reference
• Gibbons (1992) “Game Theory for Applied Economists” (Gib) - Optional reference

Printouts:

• Choice Under Uncertainty (Notes for this course)
• Choice Under Uncertainty (Stanford notes, extra material)
• Game Theory (Notes for this course)

Lecture Notes (from live lectures):

• Lecture 1
• Lecture 2
• Lecture 3
• Lectures 4-5
• Lectures 6-7
• Lecture 8
• Lecture 9

Homeworks and solutions:

• Homework 1 (Due Tuesday, 14th November, 9am) + Solution
• Homework 2 (Due Tuesday, 21st November, 9am) + Solution
• Homework 3 (Due Tuesday, 28st November, 9am) + Solution
• Homework 4 + Solution

Part B Outline

• Lectures 1-2: Choice Under Uncertainty
• Expected utility theory (MWG Chapters 6.A-6.B)
• Money lotteries and risk aversion (MWG Chapters 6.C-6.D)
• Lectures 3-9: Game Theory
• Simultaneous-move games (MWG Chapters 7.B-7.E, 8.A-8.D, Gib Chapter 1)
• Extensive form (dynamic) games (MWG Chapters 7.C, 9.A-9.B)
• Games with incomplete information (MWG Chapters 8.E, 8,F, 9.C)
• Repeated games (MWG Chapter 9 Appendix A, Gib Chapter 2)

Assessment

The overall course mark is based on two examinations, in December and in May. The full (100%) course mark is determined by either the December exam or the May exam marks, whichever is better. Part B of the course constitutes 50% of the mark of each exam. Homeworks are not included in the assessment.

The marking criteria are the same as for Part A of the course. Each question will be rated as no/almost/ok/good/excellent (i.e. 0 to 4) on the following learning outcomes:

• Model formulation
• Knowledge and application of concepts and tools
• Depth and accuracy of analysis

Practice exams and solution guidelines are available here:

• Mock Exam 1 and its Solution Guideline
• Mock Exam 2 and its Solution Guideline
• December 2023 Exam and its Solution Guideline