Microeconomics II

This subject has the following teaching availabilities in 2016:

Estimated total time commitment of 120 hours per semester

ECON90002 Microeconomics

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For the purposes of considering request for Reasonable Adjustments under the Disability Standards for Education (Cwth 2005), and Student Support and Engagement Policy, academic requirements for this subject are articulated in the Subject Overview, Learning Outcomes, Assessment and Generic Skills sections of this entry.

It is University policy to take all reasonable steps to minimise the impact of disability upon academic study, and reasonable adjustments will be made to enhance a student's participation in the University's programs. Students who feel their disability may impact on meeting the requirements of this subject are encouraged to discuss this matter with a Faculty Student Adviser and Student Equity and Disability Support: http://services.unimelb.edu.au/disability

The subject is an advanced treatment of selected topics in Microeconomics. Topics will be drawn from the following: an introduction to dynamic games of complete and incomplete information, bargaining, general equilibrium theory, welfare analysis, aggregation and the analysis of incomplete markets.

On successful completion of this subject students will be able to:

• Formulate and analyse dynamic games of incomplete information;
• Explain solution concepts by constructing simple examples;
• Explain the main results derived from general equilibrium theory;
• Explain the implications of the first and second fundamental theorems of welfare economics;
• Apply the analysis of bargaining to explain behaviour observed in strategic bargaining situations;
• Explain the role that aggregation plays in modern microeconomics;
• Apply the tools of microeconomics to situations of incomplete markets.

• Assignments totalling 3000 words (30%)
• 2-hour examination (70%)

You will be advised of prescribed texts by your lecturer.

This subject is not available as a breadth subject.

On successful completion of this subject, students will have improved the following generic skills:

• Evaluation of ideas, views and evidence
• Synthesis of ideas, views and evidence
• Strategic thinking
• Critical thinking
• Application of theory to economic policy and business decision making
• Accessing economic and other information
• Summary and interpretation of information
• Statistical reasoning
• Problem solving skills
• Negotiation and bargaining
• Written communication