Theory of Prices and Markets II

  • 15-weeks
  • 3 credits
  • Prerequisite: None

This course is offered through the Economics Department in the College of Arts and Sciences at Indiana University.

This is the second course in the graduate microeconomic theory core, and as such, is intended to build upon the foundations built in E521. It shall be concentrated primarily on two important modes of microeconomic analysis. First, we will shift our attention to models in which the economy is viewed as a system of interrelated markets. This is called general equilibrium analysis. The second major approach to microeconomic analysis to be studied is game theory, which can be seen as an extension of decision making under uncertainty, where some of the uncertainty is now created by the actions of other economic agents. Popular applications of this theory tend to concentrate on situations in which agents potentially have different information about the economic environment.