Introduction (KS and MAS)

Read before the lecture: Chapter 1 in Mas-Colell et al. (1995), Chapters 8, 10, 14 and 17  in Gilboa (2009).

The lecture starts illustrating the interaction between theoretical microeconomic models and empirical research on real-life economic problems. For this purpose, MAS will present  current research on an empirical test of bargaining theory.

The lecture then provides an overview of course and guidance on how to approach the readings in rest of the programme.

Week 41 - 10.10.2022 - 10-12am & 2.30-4.30pm

Revealed Preferences, Risk and Uncertainty (KS)

Chapters 8, 10, 14 and 17 in Gilboa (2009),
Chapters 2 and 3 from Chambers and Echenique (2016).

Week 41 - 11.10.2022 - 10-12am & 1-3pm

Risk and Uncertainty (KS)

Gilboa and Schmeidler (1989), Tversky and Kahneman (1992),  Klibanoff et al. (2005), Bordalo, Gennaioli and Schleifer (2012)

Week 46 - 16.11.2022 - 10-12am & 1-3pm

Time Preferences, Peferences for Flexibility, Temptation and Self-control  (KS)

Bleichrodt et al. (2008), Fishburn and Rubinstein (1982), Gul and Pesendorfer (2001

Week 46 - 18.11.2022- 10-12am & 1-3pm

Stochastic Choice (KS)

 Chapter 7 in Chambers and Echenique (2016), Gul and Pesendorfer (2006)

Week 47 - 25.11.2021 - 10-12am & 1-3pm

Experiments on Belief Dependent Preferences, Guilt and Salience (ACS)

Bellemare, Sebald and Suetens (2018), Bellemare, Sebald and Suetens (2019), Nielsen, Sebald and Sørensen (2021)

Week 48 - 30.11.2022 - 10-12am & 1-4pm

Game Theory (KS)

Osborne and Rubinstein (1994), Chapter 1,2,6 & 11 and 12

The lecture gives you an overview over important game theoretic concepts which are used in the literature on which the rest of the course is based.

Week 48 - 02.12.2022 - 10-12am & 1-3pm

Mechanism Design (KS)

Jackson (2014)

Week 49 - 06.12.2022 - 10-12am

Student Workshops: Moral Hazard, Adverse Selection and Signalling (AB)

Students are divided into three groups and each presents one of the three topics. They can take inspiration from Bolton and Dewatripont (2005)

Week 49 - 07.12.2022 - 10-12am & 1-3pm

Auction Theory (AB)

Myerson (1981), Chapter 1, and 2 in Krishna (2010)

Week 50 - 13.12.2022 - 10-12am & 1-3pm

The Theory of the Firm (AB)

Grosman and Hart (1986)

How to Write a Referee Report? (AB)

Berk, Harvey and Hirshleifer (2017)

Attendance is obligatory. In order to pass the course, students have to master three different tasks in a satisfactory manner with the possibility of retaking each of them once.

1. The students have to either hand in the solutions to one problem-set or to hand in a research proposal (approximately 10 pages) on the basis of the microeconomic theory taught in the class. The hand out date for the problem set is January 4, 2023 and hand in date for either the research proposal or the solutions of the problem set is January 18, 2023.
2. They have to present one academic research article mentioned in the lecture plan below and comment on the presentation of another student in class.
3. They have to write a referee report (approximately 4 pages) on an unpublished microeconomic theory paper of their own choice and hand it in until December 31, 2022.

Selected Chapters from:

Bolton, Patrick and Mathias Dewatripont (2005), Contract Theory, MIT Press: Cambridge, MA.

Chambers, Christopher P. and Federico Echenique (2016), Revealed Preference Theory, Econometric Society Monograph, Cambridge University Press: Cambridge, UK.

Gilboa, Itzhak (2009), Theory of Decision under Uncertainty, Econometric Society Monographs 45, Cambridge: Cambridge University Press.

Jackson, Matthew O., Mechanism Theory (December 26, 2014). Available at SSRN: https://ssrn.com/abstract=2542983 or http://dx.doi.org/10.2139/ssrn.2542983

Krishna, Vijay (2010), Auction Theory, Second Edition, Academic Press: Amsterdam et al.

Mas-Colell, Andreu, Michael D. Whinston and Jerry R. Green (1995), Microeconomic Theory, Oxford University Press: New York and Oxford.

Osborne, Martin and Ariel Rubinstein (1994), A Course in Game Theory, MIT Press: Cambridge, MA.

Selected Journal Articles

1 Decision theory: decision making under risk, uncertainty, and over time
Introduction:  Chapter 1 in Mas-Colell et al. (1995); Chapters 8, 10, 14, 17 in Gilboa (2009)

Revealed preferences: Chambers and Echenique (2016), Rubinstein and Salant (2006), Manzini and Mariotti (2007), Masatlioglu et al. (2012), Chambers et al. (2017), De Clippel and Rozen (2021)

Risk and uncertainty: Tversky and Kahneman (1992) Klibanoff et al. (2005), Gilboa and Schmeidler (1995), Easley and Rustichini (1999), Dekel et al. (2001), Marinacci (2002), Halevy and Feltkamp (2005), Halevy (2007), Ahn (2008), Strza- lecki (2011), Bordalo et al. (2013) Nielsen et al. (2021) Bellemare et al. (2018) Belle- mare et al. (2019)

Time preferences, flexibility, temptation, and self-control: Kreps (1979), Gul and Pesendorfer (2001), Sarver (2008) Bleichrodt et al. (2008), Fishburn and Rubinstein (1982)

Stochastic choice: Chambers and Echenique (2016), Gul and Pesendorfer (2006), Ahn and Sarver (2013), Gul et al. (2014), Manzini and Mariotti (2014), Brady and Rehbeck (2029) Lu (2016), Kitamura and Stoye (2018) Cerreia-Vioglio et al. (2019)

2 Game theory and strategic decision making

Game theory: Chapters 1, 2, 6, 11, 12 in Osborne and Rubinstein (1994), Osborne and Rubinstein (2003), Esponda and Pouzo (2016), Salant and Cherry (2020)

Mechanism design: Jackson (2014), Border and Sobel (1987), Abdulkadiro˘glu and Sönmez (2003), Ben-Porath et al. (2014)

Student workshops on moral hazard, adverse selection and signalling:
Bolton and Dewatripont (2005)

Auction theory: Krishna (2010), Myerson (1981), Pesendorfer and Swinkels (2000), Bulow and Klemperer (2002) Goeree and Offerman (2003), Burkett and Woodward (2020)

The theory of the firm: Grossman and Hart (1986), Levin (2003), Gans (2005), Hart and Moore (2008)

How to write a referee report? Berk et al. (2017)

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