Advanced Topics in Microeconomics 15 credit

ECON80150 Advanced Topics in Microeconomics 15 credit 15 Semester 2 Postgraduate Research Postgraduate Research Craig Webb Unit coordinator 1 FHEQ level (Framework for Higher Education Qualifications) ' Doctorate ' European Credit Transfer & Accumulation System Rating : 7.5 The aim of this course is to advance on the foundations of an understanding of the modern, core principles of microeconomic analysis through rigorous analyses of advanced topics in microeconomics. The topics covered are chosen from the foundations of subjective expected utility, models of ambiguity aversion, prospect theory and loss aversion, time preferences, and other-regarding preferences, and applications of non-expected utility preferences. At the end of this course students should: <ul> <li> Have a clear understanding of the foundations of subjective expected utility.</li> <li> Be able to derive and apply models of ambiguity attitudes.</li> <li> Have a clear understanding of intertemporal choice, present bias and time inconsistency.</li> </ul> Have a clear understanding of the Fehr-Schmidt Preferences model. <ul> <li> Subjective expected utility.</li> <li> Ambiguity models (Choquet expected utility and multiple priors).</li> <li> Prospect Theory: Foundations; Loss Aversion; Elicitation Methods.</li> <li> Intertemporal choice; time consistency; present bias; hyperbolic discounting.</li> <li> Fairness and Social Preferences: Fehr-Schmidt Preferences.</li> </ul> Lectures and tutorials 0 Other 100% 4 x25% coursework Y The following journal articles are the main sources for the lecture material:  <ul style="margin-top: 0cm" type="disc"> <li class="MsoNormal" style="margin: 0cm 0cm 0pt; line-height: 150%; mso-list: l0 level1 lfo1; tab-stops: list 36.0pt"> Bleichrodt, Han, Kirsten I.M. Rohde, and Peter P. Wakker (2009) “Non-Hyperbolic Time Inconsistency,” Games and Economic Behavior 66, 27–38.</li> <li class="MsoNormal" style="margin: 0cm 0cm 0pt; line-height: 150%; mso-list: l0 level1 lfo1; tab-stops: list 36.0pt"> Chateauneuf, Alain, Jurgen Eichberger and Simon Grant (2007) “Choice under uncertainty with best and worst in mind: NEO-additive capacities,” Journal of Economic Theory 137, 538-567.</li> <li class="MsoNormal" style="margin: 0cm 0cm 0pt; line-height: 150%; mso-list: l0 level1 lfo1; tab-stops: list 36.0pt"> Diecidue, Enrico, Ulrich Schmidt and Horst Zank (2009), "Parametric Weighting Functions," Journal of Economic Theory, 144: 1102-1118.</li> <li class="MsoNormal" style="margin: 0cm 0cm 0pt; line-height: 150%; mso-list: l0 level1 lfo1; tab-stops: list 36.0pt"> Fehr, Ernst and Klaus Schmidt (1999) “A Theory of Fairness, Competition and Cooperation,” Quarterly Journal of Economics 114, 817–868.</li> <li class="MsoNormal" style="margin: 0cm 0cm 0pt; line-height: 150%; mso-list: l0 level1 lfo1; tab-stops: list 36.0pt"> Frederick, Shane, George F. Loewenstein, and Ted O’Donoghue (2002) “Time Discounting and Time Preference: A Critical Review,” Journal of Economic Literature 40, 351–401.</li> <li class="MsoNormal" style="margin: 0cm 0cm 0pt; line-height: 150%; mso-list: l0 level1 lfo1; tab-stops: list 36.0pt"> Gilboa, Itzhak and David Schmeidler (1989) “Maxmin expected utility with a non-unique prior,” Journal of Mathematical Economics 18, 141-153. </li> <li class="MsoNormal" style="margin: 0cm 0cm 0pt; line-height: 150%; mso-list: l0 level1 lfo1; tab-stops: list 36.0pt"> Halevy, Yoram (2008) "Strotz meets Allais: diminishing impatience and certainty effect". American Economic Review 98, 1145-1162.</li> <li class="MsoNormal" styl Lectures 16 Tutorials 2 0 132 Information Lecturer: Dr Craig Webb A PGR course unitTimetable Lecture: Tuesday 2-4pmTutorial: Wednesday 10-11am