ECON-C2200 - Intermediate Microeconomics II, 28.10.2020-11.12.2020
This course space end date is set to 11.12.2020 Search Courses: ECON-C2200
Topic outline
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Most of the “self-study” in the estimated workload (see course syllabus) consists of working on problem sets. Working on problem sets is also the best single method of preparing for the exam. While there is much variability between problems, on average one numbered problem in a set is expected to take about one hour. The schedule of problem set deadlines is available in the course schedule, which is linked from the course home page.
Homework solutions to each problem set must be submitted in one pdf-file (unless otherwise noted). Add your name and student ID on the top of the first page, this makes graders’ work easier. Make sure to test your scanning quality well before the first deadline. The MyCourses upload system allows for a few extra minutes during which you can still upload your set. After the grace period closes later submissions can no longer be uploaded. Do not email us your late submission, it will not be graded.
You are allowed and indeed encouraged to discuss the problem sets with fellow students taking this course. However, everyone must write up their own individual solutions (with the exception of specifically pointed out Group work).
For a solution to be acceptable it must include the explanation behind your reasoning, including calculations where applicable. A mere bottom line answer is not acceptable.
The features explained in the initial part of a problem, before any possible subparts (a, b, c…) applies to the entire problem unless otherwise noted. The features in each subpart only apply to that subpart, unless otherwise noted.
Unless otherwise stated, assume that decision-makers are risk neutral and maximize the present value of their own payoffs (typically profits for firms, utility or consumer surplus for consumers). For discounting purposes, you can assume that future periodic payoffs are realized at the end of a period. In particular, period t=0 refers to now immediately, period t=1 to the end of first period, that is, one period from now, etc.
Even when a question asks you to find ``the equilibrium'' the correct answer might involve multiple equilibria or no equilibria. The singular phrasing is used for brevity only, unless otherwise noted. In discrete type pricing problems you can assume that a customer that is indifferent between two deals will choose the one that gives the seller more profit: no need to mess around with ``minus one cent'' prices just to handle tie-breaking.
Model solutions will be published in MyCourses soon after the deadline. Points earned from each question will be available usually within one week. Questions regarding the grading should be addressed to the course assistant. Maximum points for each question are shown in the problem set, they are equally divided between the subparts, unless otherwise noted.
A small number of interactive problems (less than 15% of total) may be done in class. They are graded separately, with the answers typically submitted during class.
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Not submitting Problem Set 6 amounts to automatic withdrawal from ECON-2200. In order to continue in this class for credit make sure to submit your solutions before the deadline, even if incomplete.
10-29 12:20 Specified number of firms in 3, added clarification in 2.d
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11-09 14:30 added clarification in 1c.
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11-23 13:10 added a hint in 9.2c.
11-23 16:30 added detail in 9.1b: the road pricing scheme should involve a positive toll in exactly one road, and no toll the other (even though negative prices aka subsidies could also be used to minimize travel time).
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11-27 12:00 Clarified 10.1
12-01 14:20, Note 10.2. In an auction it is not mandatory to bid, but in the VCG mechanism it is mandatory to submit a message. 12-02 08:00 Added footnote about the "range of outcomes."
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Note this is called a "term paper" in the syllabus.
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