Objectives

« Due to changes in health conditions related to COVID-19, course modalities may be adapted during the semester. »

This class applies concepts and tools from the previous microeconomics course to various economic situations, which include fair allocation of scarce resources, cost allocation, market design, and voting.

Contents

The course will cover the following material from the two course books (see course references) - additional material will be posted on the course webpage (moodle):

Equity and Priority (Young Chapter 2)

Fair Distribution (Moulin Chapter 2)

Equity, Equality, Proportionality (Young Chapter 4)

Taxation (Moulin Chapter 2 and Young Chapter 6)

Cost Sharing (Young Chapter 5 and Moulin Chapter 5)

Fair Bargains (Young Chapter 7)

Cardinal Welfarism (Moulin Chapter 3)

Apportionment and Voting (Young Chapter 3 and Moulin Chapter 4)

References

The following two books are mandatory for the course (readings and exercises will be assigned from both books).

• H. Moulin, “Fair Division and Collective Welfare,” MIT Press, 2004, ISBN 0-262-13423-3, paper back edition.
• H.P. Young, “Equity: In Theory and Practice,” Princeton University Press, 1994, ISBN 0-691-04464-3, paperback edition.

Further course material will be distributed\posted throughout the course through the moodle course page.

Pre-requisites

Either HEC's second year microeconomics course or a quantitative intermediate microeconomics course is a prerequisite for this course.

Exchange students with no solid background in economics and statistics\econometrics tend to preceive this course as extremely difficult!

Evaluation

First attempt

Exam:

Written 2 hours

Documentation:

Not allowed

Calculator:

Allowed with restrictions

Evaluation:

written exam, 2 hours, closed book, grade = max{(25% homework grade + 75% final exam grade), final exam grade}.

[ Calculatrice 4 opérations selon directive HEC ]

Retake

Exam:

Written 2 hours

Documentation:

Not allowed

Calculator:

Allowed with restrictions

Evaluation:

Online exam, 2 hours, closed book, grade = 100% final exam grade.

[ Calculatrice 4 opérations selon directive HEC ]