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ECOM-R311 Advanced Microeconomics 2, 5 cr 
Code ECOM-R311  Validity 01.01.2017 -
Name Advanced Microeconomics 2  Abbreviation Adv Micro 2 
Scope5 cr   
TypeAdvanced studies
  GradingGeneral scale 
    Can be taken more than onceno
Unit Master's Programme in Economics 

Hannu Vartiainen 

Target group 

Master’s Programme in Economics (Research track). Open to doctoral students in economics.


First autumn term

Learning outcomes 

After the course, the student should

  • Be familiar with the assumptions and results regarding decision making under uncertainty and economic equilibrium 
  • Be able to construct and analyse general equilibrium models under uncertainty
Completion methods 

The course consists of lectures (24 hours) and exercise sessions (8 hours), where solutions to the homework assignments are discussed. The course is completed by a final exam. While highly recommended, the exercise sessions are not mandatory.


Advanced Microeconomics 1 and knowledge of the basic concepts of microeconomic theory

Recommended optional studies 

Knowledge of basic analysis is certainly an advantage.


The first part of the course studies decision making under uncertainty, focusing on the approach of von Neumann and Morgenstern, specifying when decision making reflects the maximisation of expected utility. The theory is applied to questions of risk and related topics. Other approaches to decision making under uncertainty are also mentioned. In the second part we study the basics of general equilibrium theory (GET): modelling, the existence of equilibrium, welfare theorems. The relationship between the equilibrium and the core is highlighted via the core convergence theorem. Finally, we study how GET can handle uncertainty.

Study materials and literature 

In addition to the lecture slides, required readings include Chapters 6, 10 and 15–19 of the textbook by Mas-Colell, Whinston, and Green (Microeconomic Theory, 1995, Oxford University Press).

Activities and teaching methods in support of learning 

All material related to the course is delivered through Moodle. It also contains a discussion forum where students can discuss issues related to the course with each other and the teacher.

Assessment practices and criteria 

The grade on a scale from 0 (fail) to 5 is based on the final exam. Problem sets are highly recommended but not mandatory.


Current and future instruction
Functions Name Type cr Teacher Schedule
registration period has ended Advanced Microeconomics 2  Lecture Course  Klaus Kultti 
28.10.19 -02.12.19 mon 12.15-13.45
29.10.19 -03.12.19 tue 14.15-15.45
11.11.19mon 16.15-17.45
25.11.19mon 16.15-17.45
09.12.19mon 16.15-17.45
16.12.19mon 12.00-14.00
24.02.20mon 10.00-12.00

Future examinations
No examinations in WebOodi