MICROECONOMICS

MICROECONOMICS

Lorenzo Carbonari

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.