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Our objective this semester will be to introduce students to theoretical economics models of individual agents and social outcomes

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Our objective this semester will be to introduce students to theoretical economics models of individual agents and social outcomes. We will start by studying models of rational economic agents, i.e., models of individual choice and revealed preference. We will then look in detail to three approaches that studey social outcomes when muliple individual agents are involved. The first one is social choice. therory which concerns how we aggregate the prefermnces f agents in a society to obtain a social preference or a social choice. The second one is cooperative game theory which studies normative/descriptive societal outcomes when we know the values that coalitionns of individuals may obtain by joining their forces together. The third is no-cooperative game theory and the concept of equilibbrium, when a group of self--iterested individuals interact and everyonne's payoff is affected by everybody else's action. We will cover a number of specific applications and eamples of these threee approaches, including markets, mechanism design, and auctions. Throughout the course, we will emphasize and illustrate the extend of limits that individual private information and strategic behavior impose on societ an outcomes.

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