Microeconomics II: M2 Economic Analysis,

Under construction

Taught by

Régis Renault: regis.renault@cyu.fr

Office CYU, Chênes 1. A106.

Phone: +33134257228

Course outline

I. Risk and uncertainty

January 9-23 Chapter 1. Decision under uncertainty (ch 6): SLIDES

a criterion of choice under un-

certainty: expected utility theory (6B), risk aversion (6C), the difficult

comparison of payoff distribution (6D), subjective probability theory (6F).

January 26-February 2 Chapter 2. General equilibrium with uncertainty (ch 19, except 19 D-E-G-H): SLIDES 

model (19B, contin- gent commodities), Arrow-Debreu Equilibrium (19C), welfare theorems, examples of incomplete markets (19F), market failures more generally.

II Game theory.

February 6-27 Chapter 3. Games, strategies and equilibrium. SLIDES

Games and strategies. – Nash equilibrium. – Perfect equilibrium.

March 1st-15 Chapter 4. Games with imperfect information.

Bayesian equilibrium. – Perfect Beayesian Equilibrium.

Homework assignments

Problem set 1 (1st draft Jan 26)

Problem set 2 (due Thursday March 21 2024)