NMAB20004U Microeconomics 2: Market Imperfections (MikØk2)

Volume 2021/2022

Bacheloruddannelsen i matematik-økonomi


This course treats non-cooperative game theory, auctions, externalities and public goods, as well as asymmetric information including adverse selection and moral hazard.

Learning Outcome

Knowledge: The course presents microeconomic theory of markets with imperfections. Non-cooperative game theory is introduced and applied to the analysis of imperfect markets. The course covers models exhibiting asymmetric information and externalities. The applications include auctions, bargaining, moral hazard, and public goods. Ideas from behavioural economics and knowledge of economic experiments are presented along with the more classical game theory.

Skills: Solving non-cooperative games, and models with imperfect markets. Deriving these models' predictions. Applying game-theoretic arguments. Solving models of auctions.

Competences: Applying game-theoretic analysis and economic arguments in the face of strategic decisions. Applying the models to predict behaviour and outcomes of strategic situations.

Varian, H. R. (2014). Intermediate Microeconomics: A Modern Approach: Ninth International Student Edition. WW Norton & Company.

Jehle, G. A., & Reny, P. J. (2011). Advanced Microeconomic Theory (Third). Essex: Pearson Education Limited.

Microeconomics 1 (MikØk1), Measures and Integrals (MI).
5 hours of lectures and 3 hours of exercise classes per week for 7 weeks.
  • Category
  • Hours
  • Lectures
  • 35
  • Preparation
  • 147
  • Theory exercises
  • 21
  • Exam
  • 3
  • Total
  • 206
Continuous feedback during the course of the semester
7,5 ECTS
Type of assessment
Written examination, 3 hours under invigilation
Written exam

The course has been selected for ITX exam
Exam registration requirements

Two mandatory assignments must be handed in and approved.

Without aids
Marking scale
7-point grading scale
Censorship form
External censorship

30 minutes oral examination with 30 minutes for preparation. Written notes are allowed during the preparation time. At the examination, it is permitted to bring a one-page synopsis. In case the two mandatory assignments were not approved before the regular exam, the non-approved assignment(s) must be resubmitted for approval at the latest three weeks before the start of the exam week.

Criteria for exam assesment

See learning outcome.