TOPICS IN MICROECONOMIC THEORY - 2022/3

Module Overview

The module reviews recent developments in Microeconomics, with an emphasis on Consumer Choice Theory and Welfare measurement and a focus on extensions to standard neoclassical theory (Behavioural economics).

Module provider

Economics

Module Leader

BLOW Laura (Economics)

Number of Credits: 0

ECTS Credits: 0

Framework: FHEQ Level 8

Module cap (Maximum number of students): N/A

Module Availability

Semester 2

Prerequisites / Co-requisites

None.

Module content

Indicative content includes:

• Rational choice theory.
  
  
  
  • Preference relations
  
  
  • Utility representation
  
  
  • Choice rules
  
  
  
  


• The consumer choice model.
  
  
  
  • Revealed preference theory.
  
  
  • Afriat’s Theorem (linear programming)
  
  
  • Testing maximising behaviour
  
  
  
  


• Empirical revealed preference
  
  
  
  • power / predictive success
  
  
  • goodness of fit
  
  
  • nonparametric estimation
  
  
  
  


• Non-linear budget sets.


• Choice under uncertainty
  
  
  
  • expected utility, subjective expected utility
  
  
  • common behavioural violations of expected utility model.
  
  
  
  


• Behavioural models
  
  
  
  • Prospect theory
    
    
    
    • Reference dependence (and Kosegi & Rabin personal equilibrium)
    
    
    • Probability weighting. Also rank dependent utility, cumulative prospect theory.
    
    
    
    
  
  
  • Hyperbolic Discounting
  
  
  
  


• Models of household decision making
  
  
  
  • Cooperative/non-cooperative bargaining, general “collective household” model.
  
  
  
  

Assessment pattern

Alternative Assessment

None.

Assessment Strategy

The assessment strategy is designed to provide students with the opportunity to demonstrate their ability to critically evaluate current literature and to show their understanding of the ideas and techniques covered in the module.

 

Thus, the summative assessment for this module consists of:

• A presentation on a research paper of the student’s choice.


• A written assignment from a choice of problems or essay type questions

 

Formative assessment

Students will be assessed formatively through interactive teaching and learning methods and in office hours.

 

Feedback

Students will receive verbal and written feedback on their presentation as well as on their coursework.

Module aims

• Provide an overview of frontier topics of different models of consumer choice (static, dynamic, under uncertainty)
• Provide an overview of some basic tools for conducting research in (applied) microeconometric choice theory with a focus on testing different behavioural models
• Facilitate a critical evaluation of recent papers in the relevant literature.

Learning outcomes

Methods of Teaching / Learning

The learning and teaching strategy is designed to:

• Give a broad but still focused overview of frontier topics in applied consumer theory and why they are important/interesting.


• Encourage an understanding of the historical path to current state-of-the-art research questions as a guide to how research develops.


• Enhance students’ skills in presenting their findings in verbal and written format (through discussions in lectures as well as the assignment).


• For students interested in this area of research, this course should also give many of the tools necessary to start an independent piece of research.

 

The learning and teaching methods include:

11 lectures combining presentations by the lecturer and discussion among the lecturer and students. Discussions will be a mixture of an assessment of papers assigned for reading prior to the lecture, and informal discussion designed to encourage students to comment and interact more spontaneously.

Indicated Lecture Hours (which may also include seminars, tutorials, workshops and other contact time) are approximate and may include in-class tests where one or more of these are an assessment on the module. In-class tests are scheduled/organised separately to taught content and will be published on to student personal timetables, where they apply to taken modules, as soon as they are finalised by central administration. This will usually be after the initial publication of the teaching timetable for the relevant semester.

Reading list

https://readinglists.surrey.ac.uk
Upon accessing the reading list, please search for the module using the module code: ECOD019

Programmes this module appears in

Please note that the information detailed within this record is accurate at the time of publishing and may be subject to change. This record contains information for the most up to date version of the programme / module for the 2022/3 academic year.