IKE 502E - Microeconomics II

Course Objectives

1. To teach market power and the oligopolistic market structure
2. To teach economic outcomes when phenomena such as asymmetric information are present and to learn to assess these outcomes from the perspective of social welfare
3. To teach the General Equilbrium Theory
4. To teach to design models and methods such as social choice, axiomatic bargaining, and incentive mechanisms by taking social welfare into account

Course Description

The course starts with analzing market power. Then, it continues by investigating from the perspective of social welfare phenomena that cause market failure such as asymmetric information, adverse selection, and
moral hazard. Thenö General Equılbrıum Theory and its social welfare implications are examined. The course ends with social choice theory, axiomatic bargaining, and economic mechanism design.