Microeconomics

This course introduces the mathematical modeling of the behavior of actors seeking to optimize an individual objective in a competitive situation.

Introduce the formalism of utility maximization for one actor, then two interacting actors. Establish the main optimality results and apply this formalism to the competitive economic context.

Convex optimization course.

Recommended prerequisites: a good command of differential and integral calculus, as well as solving constrained optimization problems.

1.Introduction :

  a) Evolution of the definition of economics

  b) A brief history of Game Theory.

2 Interaction between economic players and elements of non-cooperative game theory :

  a)Game description

    a.1) Simultaneous and dynamic games

            - Representation of a normal-form game

            - Extensive representation

    a.2) Balance in dominant strategies.

    a.3) Nash equilibrium

    a.4) Example of model application to industrial economics: Duopoly à la Cournot and à la Bertrand.

  b) Dynamic games

    b.1)Nash equilibrium refinement: perfect subgame equilibria and backward induction algorithm

    b.2) Market entry games

3. Information theory: asymmetric information and incentives:

  a)Principal-agent model

    a.1) Information asymmetry: Akerlof's "Lemon" model

    a.2) Market entry model in the presence of asymmetric cost information.

  b) Incentives and mechanisms

    b.1) Design of incentive mechanisms

    b.2) Realization of a dominant strategy.

Hourly volumes :

            CM : 9

            TD : 9

            TP : 

            Terrain :