Master’s Programme in Economics (Research track). Open to doctoral students in economics.
Advanced Microeconomics 1 and 2 and knowledge of the basic concepts of microeconomic theory
Advanced Microeconomics 3. Knowledge of mathematical analysis is certainly an advantage.
After the course, the student should
- Be familiar with the analytical techniques used in information economics
- Have the skills for modeling strategic interactions under incomplete information
First spring term
This course introduces the students to topics and methods in modern information economics. The emphasis is on developing a cohesive toolbox based on game theoretic reasoning, which can be applied in modelling a wide range of interactions under incomplete information. Topics covered in the course are adverse selection and mechanism design, moral hazard and imperfect monitoring, and dynamic models of incomplete information including signalling and cheap talk. Selected applications include auctions, bargaining, market microstructure and reputation formation.
In addition to the lecture slides, required readings include Chapters 10–14 of the textbook by MasColell, Whinston and Green (Microeconomic Theory, 1995, Oxford University Press). Further reading material will be announced on the course website
The course is lectured by Aalto University. All the material related to the course is to be found on the course website.
The grade on a scale from 0 (fail) to 5 is based on the final exam. Problem sets are highly recommended but not mandatory.
The course consists of lectures (24 hours) and exercise sessions (8 hours), where solutions to the homework assignments are discussed. The course is completed by a final exam. While highly recommended, the exercise sessions are not mandatory.