Mathematical Economics II


Course Objective

In a globalized world, cooperation among economic partners has become
increasingly relevant. Another relevant aspect in nowadays economic
environments is social and economic networks. In this course, the
student learns basic concepts on mathematical modeling of bargaining and
cooperation and analysis the role of social and economic networks and
social interactions in explaining economic behavior.

Course Content

Bargaining Problems:
- Nash bargaining solution
- Kalai-Smorodinsky bargaining solution

Cooperative Game Theory:
- Introduction to cooperative games
- The core of a cooperative game and balancedness
- Convexity and the Shapley value
- Linear production games
- Sequencing games

Social and Economic Networks:
- Introduction to social networks
- Random networks
- Strategic network formation
- Diffusion of networks
- Learning on networks
- Games on networks

Teaching Methods

Classes. During classes time will be made for discussing exercises.
The second part of this course (Social and Economic Networks) uses a
blended learning approach. That means that students are asked to prepare
the classroom meeting by watching clips. Students can earn a bonus point
with successfully answering quiz question in class.

Method of Assessment

Intermediate exam – Individual assessment
Final exam – Individual assessment
Individual assignment - Individual assessment
Quizzes in classroom - Individual assignment


Syllabus on Canvas.
Jackson, M.O (2010), Social and Economic Networks, Princeton University
Press, Available as paperback or ebook.

Recommended background knowledge

Linear Algebra, Analysis I, Probability Theory, Operations Research I

General Information

Course Code E_EOR2_ME2
Credits 6 EC
Period P4+5
Course Level 200
Language of Tuition English
Faculty School of Business and Economics
Course Coordinator dr. M.A. Estevez Fernandez
Examiner dr. M.A. Estevez Fernandez
Teaching Staff dr. M.A. Estevez Fernandez
dr. I.D. Lindner

Practical Information

You need to register for this course yourself

Last-minute registration is available for this course.

Teaching Methods Lecture, Study Group
Target audiences

This course is also available as: