EC2A1      One Unit
Microeconomics II

This information is for the 2025/26 session.

Course Convenor

Availability

Requisites

Pre-requisites:

Before taking this course, students must have completed: EC1A1 and (MA100 or MA108)

Additional requisites:

Students on the MSc in Economics (2 Year Programme) must have completed Introductory Course in Microeconomic Principles (EC2A0) and be taking either Mathematical Methods (MA100) or Further Mathematical Methods (MA212) alongside EC2A1.

In this course, we build on the tools learnt in Microeconomics I (EC1A1) to provide an in-depth analysis of microeconomic theory, as well as applications of the tools of microeconomics to concrete economic problems.

The first part of the course builds on the analysis of the demand and supply side in EC1A1 to analyse general
equilibrium, market failures and the role of government intervention. Topics are likely to include:

• General equilibrium across a system of markets
• Inequality versus efficiency
• The effects of government interventions in markets
• Different market failures and what governments can do to correct them
• The role of political economy in shaping economic policy

The second part of the course explores game theory and considers a range of applications. Topics are likely to
include:

• Extensive forms and normal form games
• Pure and mixed strategy Nash equilibria
• Backward induction and subgame perfection
• Repeated games
• Games with incomplete information and belief refinements

The course prepares students for third year optional courses.

1 hours of classes in the Spring Term.
20 hours of lectures and 9 hours of classes in the Winter Term.
20 hours of lectures and 10 hours of classes in the Autumn Term.

This course has a reading week in Week 6 of Winter Term.

There will be a reading week in Week 6 of WT (no lectures, classes or support sessions that week).

Student learning will be supported through the EC2A1 Support Lab and through a dedicated discussion forum.

This course is delivered through a combination of classes and lectures totalling a minimum of 60 hours across Autumn Term, Winter Term and Spring Term.

Students are expected to complete the problem sets and any required readings before attending classes.

A minimum of two pieces of work will be assigned and marked each term with feedback provided.

For the Autumn Term no textbook covers all aspects of the course. A full reading list will be made available at the
beginning of the term.

For the Winter Term the set textbook is:

• Watson, Joel. “Strategy: An Introduction to Game Theory”, WW Norton (2013), 3rd edition

Exam (70%), duration: 180 Minutes, reading time: 15 minutes in the Spring exam period

Continuous assessment (30%)