EC301-Advanced Microeconomics

Module Provider: School of Politics, Economics and International Relations
Number of credits: 20 [10 ECTS credits]
Level:6
Terms in which taught: Autumn term module
Pre-requisites: EC201 Intermediate Microeconomics and EC202 Intermediate Macroeconomics and EC206 Intermediate Mathematics for Economics or EC201 Intermediate Microeconomics and EC202 Intermediate Macroeconomics and MA2DE Differential Equations and MA2RA1 Real Analysis I
Non-modular pre-requisites:
Co-requisites:
Modules excluded:
Current from: 2020/1

Module Convenor: Dr Steven Bosworth

Email: s.j.bosworth@reading.ac.uk

Type of module:

Summary module description:
This module introduces game theory and some of its economic applications.

Aims:

This module intends to provide students with some basic decision- game-theoretic tools in order to understand a range of microeconomic concepts such as oligopoly, bargaining, contract theory, and markets with asymmetric information. 

Assessable learning outcomes:

At the end of the module students should be able to:

1. Abstract when trying to explain (model) economic events.


2.  Recognise the existence of equilibria in economic phenomena and solve abstract models pertaining to that.


3. Apply these models to novel economic events to evaluate their external validity. 

Additional outcomes:

Students will learn modern approaches to modelling decisions in strategic settings, and within that they will be exposed to analytical skills and tools, rigorous arguments and the value of precision in making such arguments. 

Outline content:

Static games, Nash equilibrium; dynamic games, subgame-perfection; perfect and imperfect information. Oligopolistic competition models; bargaining models.

Global context:

This is an optional module available to Part 3 Economics degree programs, and builds on methods and topics covered in EC201 Intermediate Microeconomics.

Brief description of teaching and learning methods:

The lectures cover the basic module material. Working through the problem sets individually is an absolute must to achieve the course outcomes. Lecture notes and other guidance will be provided via Blackboard. There will be a strong emphasis on learning through attempting to solve exercises, and by application to real world situations. 

Contact hours:

	Autumn	Spring	Summer
Lectures	30		2
Guided independent study:	150		18
Total hours by term		0
Total hours for module	200

Summative Assessment Methods:

Method	Percentage
Written exam	60
Written assignment including essay	20
Class test administered by School	20

Summative assessment- Examinations:

Several coursework assignments and/or a classroom exam during term.

Part 3 examinations are held in the Summer term.

Summative assessment- Coursework and in-class tests:

Assessment for the course consists of one test in week 11 carrying a 20% weight, a written project due in the spring term which carries a 20% weight, and a summer exam for the remaining 60%. The class test will cover problems introduced over the course of the module and structured similarly to, though shorter than, the summer exam. In the written project you will analyse a public policy issue through the lens of the game theoretic models we learn over the term. More details regarding the project will follow in due course.

Formative assessment methods:
Revision exercises, exercises from textbooks, possible use of mock tests.

Penalties for late submission:

The Module Convenor will apply the following penalties for work submitted late:

• where the piece of work is submitted after the original deadline (or any formally agreed extension to the deadline): 10% of the total marks available for that piece of work will be deducted from the mark for each working day[1] (or part thereof) following the deadline up to a total of five working days;
• where the piece of work is submitted more than five working days after the original deadline (or any formally agreed extension to the deadline): a mark of zero will be recorded.

The University policy statement on penalties for late submission can be found at: http://www.reading.ac.uk/web/FILES/qualitysupport/penaltiesforlatesubmission.pdf
You are strongly advised to ensure that coursework is submitted by the relevant deadline. You should note that it is advisable to submit work in an unfinished state rather than to fail to submit any work.

Assessment requirements for a pass:
A minimum overall mark of 40%.

Reassessment arrangements:
Re-examination for all modules takes place in August/September of the same year.
Re-assessment is by examination only; coursework is not included at the second attempt.

Additional Costs (specified where applicable):

Additional Costs (specified where applicable): 1) Suggested text books: Gintis, Herbert. (2009). Game Theory Evolving: A problem-centered introduction to modeling strategic interaction, Second Edition. Princeton, NJ: Princeton University Press. Gintis, Herbert. (2009). The Bounds of Reason: Game Theory and the unification of the behavioral sciences. Princeton, NJ: Princeton University Press.

Last updated: 4 April 2020