Elements of Mathematical Economics

Credits

Prerequisites

None.

Scientific-disciplinary sector (SSD)

SECS-S/06 Mathematical Methods for Economics and Actuarial and Financial Sciences.

Examination method

Oral exam.

Learning
objectives

The course aims to provide the mathematical tools that recur in the formulation of the models of classical economics, with particular regard to static and dynamic equilibria; and to master the logic of economic facts that allows the formulation of the above-mentioned models.

Syllabus

Preferences and their representation by means of utility functions. Individual advantage as a pay-off function. Bargaining and Nash equilibria. Cooperative games: the set of equilibria and the Shapley value. Models of exchange economies. Welfare theory: welfare theorems, Pareto and Walras equilibria. Social choice theory and voting systems. Auction theory.

Expected learning
outcomes

At the end of the course, students must demonstrate that they

know and understand the issues related to describing an economic problem by means of mathematical tools, with particular regard to equilibrium tools;
are able to apply the knowledge acquired by independently setting up an economic problem through its modelling, and are able to solve the resulting model with the appropriate mathematical methods;
are able to communicate ideas and solutions clearly, rigorously and effectively to both specialist and non-specialist audiences;
are able to identify the most appropriate methods to analyse and solve a problem related to the course topics and to interpret the results correctly.

Learning outcomes
to be assessed

Problem-solving ability; ability to model and interpret phenomena of classical economics; mastery of the mathematical tools used in the course.

Elements of Mathematical Economics