AECO 22A10 - Microeconomics: Information, Design and Institutions

This course studies the design of institutions that optimally cope with fundamental, longstanding economic questions (allocation of private goods, public good provision, externalities). We start from a simple, institution-free description of each question, try to understand the basic tensions at work (for example environmental externalities), and derive institutions that optimally address these tensions (for instance systems of permits or taxes). In the process, we introduce the important ideas of social choice, game theory, and market design. We will shed light on the theoretical concepts using empirical applications and in-class games. The course will introduce formal tools,

using basic mathematical concepts, necessary to understand key economic concepts.

Two hour lecture by professor, including participation activities, on Wednesdays, 10:25-12:25.

There are also tutorials (traveau dirigés in French) held by the teaching assistant.

The grading of the course is divided between 1/3 final exam and 2/3 continuous assessment.

The final exam is a two hours closed book exam. The continuous assessment, graded during the tutorials (TD), is broken down as follows:

• 40% — midterm exam, held around week 7.
• 30% — board corrections during tutorials. Solutions are distributed when the exercises are assigned, but you will be picked at random to present one of the exercises on the board in class.
• 30%—tutorial participation, including the Moodle quizzes completed between each lecture and the next.