ECOMG311 Microeconomics 2, 5 cr
Code 
ECOMG311 
Validity 
01.01.2017 

Name 
Microeconomics 2 
Abbreviation 
Micro 2 
Scope  5 cr 


Type  Advanced studies 
Type  Course 




Grading  General scale 
 
 no 


Can be taken more than once  no 
Unit 
Master's Programme in Economics 

Teachers
Description
Target group 
Masterâ€™s Programme in Economics (General Track). Open to all. 
Timing 
First autumn term, after completing Microeconomics 1 
Learning outcomes 
After the course, the student should
 Be familiar with main problems in the economics of information as well as the standard modelling techniques.
 Understand the mechanisms behind standard problems of information economics: adverse selection, moral hazard and signalling

Completion methods 
The course consists of lectures (24 hours) and exercises either in separate sessions or integrated into the lectures. The lectures and exercise sessions are not mandatory. There is a written final exam and four internet quizzes based on the homework assignments. The homework assignments consist of mostly theoretical exercises. 
Prerequisites 
The course builds partly upon the contents of Microeconomics 1. Hence, the student is assumed to be familiar with the expected utility theory and the theory of choice 
Recommended optional studies 
Knowledge of basic analysis is certainly an advantage. 
Contents 
The course provides an overview of the issues arising in the economics of information. We cover the problems of moral hazard, adverse selection and signalling. Understanding how private information and incentives in these problems interact is a prerequisite for understanding many of the problems in labour and financial markets as well as in the field of politics. We also cover problems related to externalities and some auction theory. 
Study materials and literature 
Jehle and Reny: Advanced Microeconomic Theory (3rd ed.), Chapter 7. The information economics part is based mostly on lectures. 
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. Each homework assignment involves multiplechoice questions that the students answer through Moodle before the exercise sessions related to the homework assignment. 
Assessment practices and criteria 
The grade on a scale from 0 (fail) to 5 is based on the sum of points earned in the final exam and the quizzes based on the homework assignments. The maximum number of points is 100, of which 60 come from the final exam and 40 can be earned in the quizzes based on the homework assignments. To pass the course, the student must earn at least 50 points in total and at least 30 points from the final exam. 

Current and future instruction
Future examinations
No examinations in WebOodi 