Advanced Microeconomics 7.5 credits

The course captures standard concepts of noncooperative game theory and applies these concepts to describe and analyze market failures. Topics covered in the course are, e.g.: - Static and dynamic games - External effects - Market power - Monopoly pricing - Adverse selection, signaling, screening - Principal-agent problems **Connection to Research and Practice** The microeconomic and game theoretical methods that are discussed in the course are state-of- the-art research methods. They allow students to understand theoretical models that are used in articles published in leading academic journals. The course provides links to such articles. By enabling students to access knowledge in academic journals, the course content aids students’ abilities to enhance their own learning experience. Imperfect markets, asymmetric information, and incentive problems lead to market failures and, therefore, inefficient outcomes. The described issues affect, e.g., production and recruitment decisions of firms and have important implications for the design of management contracts and government interventions, applications of which are dealt with in the course. These aspects have a highly practical relevance in many work environments.