ECONOMICS 204C

 

This is the third quarter of PhD microeconomic theory.  This course could be titled "advanced topics" or perhaps more accurately titled "topics not covered in the first two quarters."  The syllabus provides a more detailed description.

 

SYLLABUS

A. Monotone Comparative Statics

                1. Supermodularity

                2. Expected value

                3. Affiliated values

                4. Supermodular Games

                5. Submodular Games     

B. Social Welfare Functionals and political economy

             1. May’s theorem

             2. Arrow Conditions

             3. Arrow Theorem

             4. Single-peakedness

             5. Candidates and Elections

             6. Envy-Free Allocations

C. Social Welfare Functions *

             1. Desirable Characteristics

             2. Nash-Bargaining Solution

D. Mechanism Design and the VCG Mechanism

             1.  Revelation Principle

             2  Equilibrium Concepts and the VCG Mechanism

             3.  Bridge and 2nd Price Auction examples

            4. First Price Auctions, Bargaining, Majority Rule and Social Choice

E. Truthful Bayesian Nash Equilibria

            1. Hotelling’s Lemma

            2. Necessary and sufficient conditions for a truthful Bayesian Equilibrium

            3. Revenue Equivalence

            4. Examples using the uniform distribution

            5. Common Values

            6. Examples using the uniform distribution; contracts

F.  Externalities

            1.  Transaction Costs and the "Coase Theorem"

            2.  Comparing Externality Solutions *

            3.  Public Goods and Clubs *

G. The Organization of Firms

            1.    Governance of Organization

            2.   Corporate Law and Agency Problems

            3.   Opportunism

H. The Geometry of General Equilibrium (covered in 204A)

            1.  Edgeworth-Bowley Box

            2.  Existence of an Equilibrium

            3.  Trade Theorems *

I.  General Equilibrium

            1.   First and Second Welfare Theorems (covered in 204A)

            2.   Uncertainty and the Market for Contingent Claims

            3.   Asymmetric Information  

 

* Probably not covered