To prepare the exam:
for this second module textbook it is not enough. Additional material is integrated in the slides.
Rough list of topics that are not in the book
1. Mathematical and statistical tools you need:
- basic probability calculations
- derivatives and partial derivatives
- definite integrals
- unconstrained maximization in one and two variables
2. Game theory:
- definition and extensive form representation of a game.
- definition of information sets, strategies and subgames.
- Definition of games of perfect and imperfect information.
- Normal form representation of a game
- Nash equilibrium, backward induction and subgame perfect Nash equilibrium
3. Preferences, utility, expected utility and discounted utility model
4. Several models about asymmetric information and externalities that are not in the textbook
5. Evaluation of consumer surplus and firm profit using integrals
