BAEcon Economics

The general aim of this course is to introduce students to the game-theoretic and mathematical techniques used in modern economic modelling, with a focus on strategic behaviour, incentives, and information. The unit covers a selection of advanced topics—such as auction theory, mechanism design, and information acquisition—chosen each year from across contemporary microeconomic theory. The emphasis is on developing analytical tools, understanding the economic logic of formal models, and examining how these frameworks are applied in real economic environments. 

Pre-requisite: ECON20120

The aim of this course is to equip students with the game-theoretic and mathematical tools used in modern economic analysis, and to develop the ability to work with models that formalise strategic behaviour, incentives, and information. The course draws on a range of advanced topics drawn from contemporary microeconomic theory, selected each year according to relevance and lecturer choice.

Possible areas from which the topics may be chosen include:

• auction theory and strategic bidding;
• mechanism design and the analysis of incentives;
• information acquisition, attention, and decision-making under limited information;
• coordination, learning, and dynamics in economic environments;
• models of uncertainty, beliefs, and strategic communication.

The objective is to give students both a solid theoretical foundation and exposure to frontier applications, enabling them to analyse rigorous models, understand their economic logic, and interpret the implications for real economic environments. 

The ability to read economic literature, including research articles 

Producing a sustained and coherent written argument 

Presentation and interpersonal skills through participation in tutorial sessions 

Exam - 70%

3 x Assignments - 3 x 10%

In class and written solutions

Mark and written feedback 

Mark and written solution 

Because the specific topics covered in this unit may vary from year to year, the reading list consists of a selection of core and advanced texts in game theory, mathematical methods, and modern microeconomic theory. Essential readings for each topic will be announced in class and posted on the course page. Typical references include:

• V. Krishna, Auction Theory (Oxford University Press).
• M. Maschler, E. Solan & S. Zamir, Game Theory (Cambridge University Press).
• K. Sydsaeter et al., Essential Mathematics for Economic Analysis (FT Press).
• K. Sydsaeter et al., Further Mathematics for Economic Analysis (FT Press).

Additional readings may be drawn from research articles and advanced textbooks relevant to the selected topics.

Students are expected to engage actively with the recommended readings and problem sets. Lecture summaries provide guidance but do not replace careful study and independent work.