Econ 7050: Ph.D. Advanced Economic Theory

FALL 2005

Syllabus

Anna Rubinchik-Pessach

Assistant Professor
Office location: Econ 121
Office hours: Monday and Wednesday 1:00-2:00 p.m. or by appointment
e-mail: Anna.Rubinchik@colorado.edu

Class time:      Monday, Wednesday 10:30 -- 11:45 am
          location: Econ 5

Course description.
This is the third course in Microeconomic Theory for Ph.D. students in a three semester sequence. Core topics are the following. General equilibrium. Existence of Walrasian Equilibria. Fundamental Theorems of Welfare Economics. Decision making under uncertainty. Theory of incentives. Gibbard-Satterthwaite theorem. 

Reading
 Grading Course Outline

HW Assignments
are posted HERE every two-three weeks.

Reading

Required texts

  1. Patrick Bolton and Mathias Dewatripont Contract Theory,  The MIT PRESS,  2005. (BD)
  2. Geoffrey A. Jehle and Philip Reny "Advanced Microeconomic Theory", Addison Wesley, 2001 (JR)
  3. Andreu Mas-Colell, Michael D. Whinston and Jerry R.Green Microeconomic Theory , Oxford University Press, 1995. (MWG)
Strongly Recommended Texts

  1. Ross M. Starr General Equilibrium Theory, An Introduction, Cambridge University Press, 1997 (S)
  2. A. N. Kolmogorov, S. V. Fomin Introductory Real Analysis, Dover, New York, 1975. (KF)
Optional Texts
  1. D. M. Kreps Notes of the Theory of Choice, Underground Classics in Economics, Westveiw Press, Boulder and London, 1988 (K)
  2. T. Parthasarathy, On Global Univalence Theorems: Lecture Notes in Mathematics , Springer Verlag, 1983 
Papers
  1. Philip Reny " Arrow's Theorem and the Gibbard-Satterthwaite Theorem: A Unified Approach"
  2. Jean-Jacques Laffont and Eric Maskin  “The Theory of Incentives: An Overview,”  in W. Hildenbrand (ed.),
    Advances in Economic Theory, Cambridge University Press, 1982, pp.31-94.

Grading Policy

Homework assignments 10%
Midterm  30%
Project and its presentation 20%
Final exam 40%

Students are encouraged to form study groups and discuss homework assignments, but they should write and submit their own (original) work.
As for the exams, any form of collaboration is prohibited.

Students with documented disabilities who may need academic accommodations should speak with the professor during first two weeks of the class (no later than September 7). Please, see also the Coordinator of Services to students with disabilities in the Disability Services Office, Willard 322 (phone 303-492-8671), so that such accommodations may be arranged.

Course Outline

Part 1: General Equilibrium Theory

Weeks 1, 2, 3
 Pure Exchange Economy. Welfare Theorems.
Existence of Equilibria.
 MWG 15.B,
17.B,  17.C
Week 4
 The Robinson Crusoe Economy
MWG 15.C
Weeks 5, 6 Competitive Equilibrium and the Fundamental Theorems of Welfare Economics
 MWG 16

Midterm: Monday,  October 3.

Part 2: Decision Making under Uncertainty and its Applications

Weeks 7, 8
 Expected Utility Theory. Risk Aversion.
 MWG 6.B., 6.C., K
Week 9
 Exchange Under Asymmetric Information.
Introduction to the theory of Contracts
 BD 1
Weeks 10-12
 Principal-Agent problems. Static Bilateral Contracting.
Hidden Information
Hidden Action
BD 2,3; MWG  14.C
BD 4; MWG 14.B
Week 13
 Multilateral Contracting. Auctions.
 BD 7.2, 7.3.
Weeks 14-16
 Incentives and Mechanism Design
The Gibbard-Satterthwaite Theorem		 MWG  23.B, 23.C



FINAL EXAM is on Tuesday, December 13, 10:30 a.m. - 1:00 p.m.