Intermediate Microeconomics II
Western University ⋅ economics 2261 ⋅ Winter 2020- Due to the COVID-19 Pandemic, the class will resume in an asynchronous online format. Please read the changelog that explains important changes to the class format and grading.
- Our final exam will be an open book take home exam. It will consist of three long problems, including an open question with a 500 word limit. The exam is focused on mechanism design, but is cumulative. The final exam will be due on April 18th at 7:00pm EST. I will post it 48 hours before that.
course information — short syllabus ⋅ changelog ⋅ official syllabus
Course Outline
- Welfare — notes ⋅ slides
- Markets — slides
- Monopoly — notes (preliminary)
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Games
— notes
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After Phoebee and Rachel talk with Joey, everybody knows about Monica and Chandler. There is first-order mutual knowledge, but there is no common knowledge because Monica and Chandler know that Joey knows, but think that Phoebe and Rachel do not know. There are higher orders of mutual knowledge as the video progresses. - Oligopoly — notes ⋅ slides
- Institutions — notes (preliminary) ⋅ slides (preliminary)
Video Lectures
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Introduction to Mechanism Design
— (8:33 min)
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Braess' Paradox
— (13:16 min)
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A Roommate's Dilemma
— (13:25 min)
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The Revelation Principle
— (10:25 min)
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Vickery Mechanism
— (12:49 min)
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Vickery-Clark-Groves Mechanism
— (17:45 min)
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Impossibility Results
— (13:45 min)
⋅ (11:31 min)
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Second-Best Mechanisms
— (17:27 min)
Assignments
- Homework 1 — due on 2/3 ⋅ assignment ⋅ solution
- Homework 2 — due on 3/9 ⋅ assignment ⋅ solution
- Homework 3 — due on 4/3 ⋅ assignment ⋅ solution
- Optional Homerowk on Common Knowledge — assignment ⋅ solution
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Preliminary Exam 2 answer keys
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Solutions for the morning section midterm Solutions for the afternoon section midterm