MICROECONOMICS
Instructional goals
The aim of this course is to give students the conceptual basis and the necessary tools for understanding modern microeconomics. The course is divided into two distinct parts: the first deals with the problems relating to consumption and production choices. In the second one, the lessons will be focused on the analysis of market forms and the strategic behavior of economic agents, with particular attention to applications relating to oligopolistic markets. In addition, the theories of price discrimination and that of general economic equilibrium are analyze
Intended learning outcomes
Basic algebra. Partial differential calculus, constrained maximisation.
Course Contents
Consumer theory (preferences, utility, demand functions, income and substitution effects, elasticities, consumption-leisure, inter-temporal consumption, risk aversion). The theory of the firm ( technology, profit maximization, cost mimization)
Competitive markets; monopoly;
oligopolistic markets; general equilibrium
Reference Books
D.A. Besanko – R.R. Braeutigam, Microeconomia, McGraw-Hill (ultima edizione). Per approfondimenti si consiglia H.R. Varian, Microeconomia, Cafoscarina (ultima edizione) e A. Pandimiglio e M. Spallone, Problemi di microeconomia, Cedam (2011).
Teaching Methods
The course includes frontal teaching lessons and exercises carried out in class with the participation of students
Assessment Method
Student assessment will be structured as follows:
1. In-progress assessment (individual) through regular online tests on the Learn platform and problem sets.
2. End-of-course assessment (individual) through a final written exam. The final exam consists of open-ended questions, multiple-choice questions, and exercises.
Thesis assignment criteria
The student's genuine interest in economics.
Week 1
Demand and Supply; Elasticity; Individual preferences
Week 2
Utility; Budget constraint; Optimal choice; Individual demand
Week 3
Recitation; Utility maximization and comparative statics; Income and substitution effects
Week 4
EV (Equivalent variation); CV (Compensating Variation); Consumer surplus; Individual labor supply.
Week 5
Production function; Input substitutability; Returns to scale.
Week 6
Recitation; Costs functions.
Week 7
Cost minimization; Comparative statics.
Week 8
Pure competition; Monopoly; Price discrimination.
Week 9
Recitation; Game theory; Counot model of oligopolistic competition
Week 10
Bertrand and Stackelberg models of oligopolistic competition. Recitation.
Week 11
Inter-temporal consumption. Uncertainty.
Week 12
Market failures; Recitation.