INDIAN INSTITUTE OF TECHNOLOGY KHARAGPUR
Verified
PROPOSAL FOR INTRODUCING A NEW SUBJECT
1. Name of the Department/Centre/School proposing to
introduce the subject
2. Name of the subject
3. L-T-P and Credit loading of the subject
4. Status of the subject
a) Specify the Session,Semester ,from which the
subject is going to be offered
b) Level of the Subject
c) Name(s) of the Programme(s) in whose curricula
this subject will be included
d) Whether the subject will be offered as
Compulsory or Elective
e) The semester in which the subject will be offered.
5. Prerequisite(s) for the subject, if any Please give the
subject number and names)
6. Objectives and contents
a) Objectives
b) Contents (in 100 to 150 words)
(Please attach the detailed lecture-wise breakup
and/or list of experiments)
7. Names of the faculty members of the
Department/Centre/School who have the necessary
expertise and will be willing to teach the subject
(minimum two faculty members should be willing to
teach the subject).
8. Do the contents of the subject have an overlap with
any other subject offered in the Institute? If yes,
please give details as follows.
a) The number and the name of the existing subject
b) Approximate percentage of overlap
c) Reason for offering the new subject in spite of the
overlap
Date :
Signature Not
Digitally signed by
Sunandan Ghosh
Date: 2022.05.10
: HS 11:57:12 IST
Location: Humanities
and Social Sciences,
: Advanced Microeconomics IIT Kharagpur
: L-T-P : 3-0-0 Credit : 3
: AUTUMN,2021-2022
: PG Level
: 1)5 th Year,ECONOMICS (M.Sc. 5Y) UG.
2)5 th Year,ECONOMICS (BS-MS 5Y) UG
: COMPULSORY
: AUTUMN
: 1)MICROECONOMICS I.
2)MICROECONOMICS II
: Built on Microeconomics I and II fundamentals, this course deals with
the advanced theories of Microeconomics with a more application-
oriented approach.
: Choice under uncertainty: Concepts of Lotteries, Axioms of choice
under uncertainty, Expected Utility Function and its properties,
Expected Utility Theorem, Violations of Expected Utility Theorem;
Preferences towards risk, risk diversification, Insurance; trade-off
between risk and return
Market structure: Cournot competition with many firms, Bertrand
competition with Product differentiation, Location models; Cartels and
collusion; Tying and bundling, Non-linear pricing; Types of entry
barriers, Conditions of entry: the Dixit Model, Limit Pricing Model,
Predatory pricing; Advertising
Game Theory: Revisiting basics; Mixed Strategy; Review of Extensive
form Games with Perfect Information; The game tree; strategies;
subgame perfection; Repeated Games: Finitely repeated games and
backward induction; infinitely repeated games; The repeated
Prisonersâ dilemma; Folk theorem; Simultaneous move games
with incomplete information (Bayesian games); Strategies; Bayesian
Nash equilibrium; auctions; other applications; Extensive form games
with imperfect information; Strategies; beliefs and sequential
equilibrium; applications
Information: Adverse Selection and Moral Hazard; principal-agent
framework, applications; Signaling games
1)Anwesha Aditya (EC-16088 ) (Dept-HS )
: Y
: 1)MICROECONOMICS II (HS21202 )
: 10
: Approximately 90% of this syllabus is completely new
Signature of the Head/Dean of the Deptt./Centre/School
 INDIAN INSTITUTE OF TECHNOLOGY KHARAGPUR
PROPOSAL FOR INTRODUCING A NEW SUBJECT

9. Recommended Text Books : Aliprantis, C. D. and S. K. Chakrabarti. Games and Decision-Making,

10. Reference Books/Materials
11 Names of the Departments/Centres/Schools/
Programmes whose students are expected to register
for this subject
Oxford University
Press, 1998
Gibbons, Robert, Game Theory for Applied Economists, Princeton
University Press, 1992.
Gravelle, Hugh and Ray Rees, Microeconomics, Pearson Education,
3rd edition, 2004.
Mas-Colell, A., M.D. Whinston and J.R. Green, Microeconomic
Theory, Oxford University Press, 1995.
Osborne, Martin J., An Introduction to Game Theory, Oxford
University Press, New Delhi, 2004.
: Shy, Oz, Industrial Organization: Theory and Applications, MIT Press,
1995.
Tirole, Jean, The Theory of Industrial Organization, The MIT Press
: 1)Humanities and Social Sciences

Date :
Signature of the Head/Dean of the Deptt./Centre/School