Descriptif

Prerequisite: ECO201

In Advanced Microeconomics (ECO 301), we build on the ECO 201 course to go beyond the competitive equilibrium setting and elicit new causes of market failures. We aim to study how the pre-sence of incomplete and asymmetric information  affects the standard analysis of microeconomic theory. The starting point is that the presence of asymmetric information leads to market failures and open the question of how to regulate and appropriately design markets to solve or reduce these failures. We will present the basics of two important theories and methods which have been the core of the modern microeconomic analysis since 1970: the signaling games and the mechanism design. The students will learn the tools to analyze markets and interactions in the presence of incomplete and asymmetric information. They will learn how to develop policy tools and how to design markets to mitigate the issues induced by the information structure.