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Advanced Microeconomics II (2026)

Lecture (M.Sc.)

Read byProf. Dr. Germain Gaudin
ContentThis course covers advanced microeconomic models, and strategic decision-making and interactions. Students will be taught solid grounds in game theory and in the analysis of non-cooperative games. The course will cover games with complete and incomplete information, as well as games with finite and infinite horizon. Students will be made familiar with various topics in auctions and mechanism design. Emphasis will be made not only on the mathematical formulation of the problems, but also on the related economic meaning (and intuition).

 A detailed list of the topics addressed is as follows:
– Game theory: Strategic decision making; Strategic form games; Extensive form games
– Information economics: Adverse selection; Moral hazard, principal-agent problem; Information and market performance
– Auctions and mechanism design: Four standard auctions; Independent private values model; Revenue equivalence theorem; Designing a revenue maximizing mechanism; Designing allocatively efficient mechanisms
Qualification targets– The students can understand, apply and evaluate the fundamental principles of microeconomic theory using mathematical techniques.
– The students can analyse key concepts of game theory and strategic decision-making.
– The students can analyse key concepts in information economics and informational issues.
– The students can analyse key concepts related to mechanism design and auctions.
Weekly time slotFri., 10:15 – 11:45 am
First sessionApril 24, 2026
RoomHS 1221
LanguageEnglish
RequirementsStrong command of intermediate microeconomics. The following text is suitable for preparation: M. J. Osborne and A. Rubinstein: Models in Microeconomic Theory, Open Book Publishers, 2020 (electronic version freely available on the publisher’s website)
LiteratureMain reference:
– G. A. Jehle and P. J. Reny, Advanced Microeconomic Theory, FT Press, 3rd ed. 2010.

Other references:
– Mas-Colell, M. D. Whinston and J. R. Green, Microeconomic Theory, Oxford University Press, 1995.
– H. R. Varian, Microeconomic Analysis, W. W. Norton & Company, 3rd ed. 1992.
– M. J. Osborne, An Introduction to Game Theory, Oxford University Press, International ed. 2009.
– R. Gibbons, A Primer in Game Theory, Pearson Higher Education, 1992.
– Rubinstein, A., Lecture Notes in Microeconomic Theory, Princeton University Press, 2016. (Freely available on the author’s website).
– D. M. Kreps, Microeconomic Foundations I: Choice and Competitive Markets, Princeton University Press, 2012.
MaterialsAvailable soon on the ILIAS course page.
Password: AMII-2026
ECTS6
Final examWritten exam, 90 minutes, date TBA

Exercise course (Main tutorial)

Given bySichen Qian
Weekly time slotMon., 10:15 – 11:45 am
First sessionApril 27, 2026
RoomHS 1010
LanguageEnglish

Exercise course (additional tutorial)

Given byZhiyuan Jiang
Weekly time slotThu., 08:30 – 10:00 am
First sessionMay 07, 2026
RoomHS 3219
LanguageEnglish