|Course Type||Course Code||No. Of Credits|
Semester and Year Offered: 6th Semester, 3rd year
Course Coordinator and Team: Taposik Banerjee
Email of course coordinator: taposik[at]aud[dot]ac[dot]in
Pre-requisites: Microeconomics courses at the undergraduate level.
Aim: This is an optional course for last semester undergraduate students. The course was designed with the intention to prepare and inspire students for higher studies in economics. The course has three components, namely, Choice Theory, Game Theory and Uncertainty, which would help the students to understand the nature of modern economic institutions. The three components are considered to be integral parts of modern economic analysis. The course introduces the basic concepts of the three above mentioned components such that the students may use them to solve simple problems.
On successful completion of this course students will be able to:
Brief description of modules/ Main modules:
The course introduces students to choice theory, game theory and the theory of uncertainty. The course introduces the properties of binary relations and preferences that a rational individual may have. It introduces the concepts of revealed preference theory and that of rationalization. It introduces the concept of static games and dynamic games with complete information along with their application in economics. It introduces the concept of a Nash-equilibrium with pure strategies and mixed strategies. It helps students to understand a simple lottery and the concepts of risk neutral, risk averse and risk seeking behavior. Following would be the brief outline.
1. Introduction to choice theory
2. Introduction to game theory
3. Introduction to the theory of uncertainty
Assessment Details with weights:
Three class tests with following weights: Test 1 (25%), Test 2 (35%) and Test 3 (40%).
Jehle & Renne, Advanced Microeconomic Theory, Pearson Education, India