The goal of this course is the one of providing students with the tools necessary to understand individual consumption and production choices under different institutional setups and under both certainty and uncertainty. During the course, we will analyze the functioning of the market and its allocative properties. This knowledge constitutes the basic framework necessary to continue studying economics. Moreover, it helps the student in analyzing economic phenomena in order to build up an informed and personal opinion of economic reality.

Knowledge and understanding: Students understand the main determinants of market prices in terms of both demand and supply. Moreover, they understand the different market structures and the role of different measures of microeconomic policy. Applying knowledge and understanding: Students are able to: (1) apply microeconomic models to formulate rigorous reasoning on the main determinants of market prices and resource allocation, (2) understand the content of articles and documents related to microeconomic issues. Making judgments: Students are able to critically analyze the functioning of a market economy as well as the role of production and consumption choices. They are also able to evaluate the role of the key economic actors and the effects of policy actions in different economic scenarios. Communication Skills: Students are able to (1) process data, documents and opinions on the most important microeconomic issues (2) clearly present to an audience of peers their reasoning on a given microeconomic issue as well as state the theoretical motivations underlying their conclusions. Learning skills: Classes, lecture notes, and articles allow students to undertake with autonomy more advanced courses of economics and conduct independently a small research project (e.g. an undergraduate dissertation) on a microeconomic topic. Personal development skills: - Self-management - Problem solving - Application of numeracy skills

Preferences and consumers’ choice: budget constraint, utility function, indifference curves; utility maximization and individual demand functions; income effect and substitution effect; optimal choice with income expressed in form of good endowments; leisure-labor choice; Intertemporal choice: the discounted utility model. Choice under uncertainty: the expected utility model; attitude towards risk. The firm and technology: production function, marginal and average product; isoquants and isocosts; returns to scale; revenue curves, cost curves in short and long run: profit maximization, cost minimization. Market structure: perfect competition, monopoly and oligopoly (Bertrand, Cournot and Stackelberg). Introduction to game theory: simultaneous and sequential games, dominant strategies, Nash equilibrium, subgame-perfect Nash equilibrium. General equilibrium: Edgeworth box and Pareto efficiency under different market structures, first and second welfare theorems. Market failures, externalities and public goods

H. Varian, Intermediate microeconomics (latest edition), Norton & Co D. Besanko and R. Braeutigam, Microeconomics (latest edition), Wiley

Lectures, exercises both in class and at home. Notes, lecture slides and exercises will also be posted on the instructor’s website.

The final exam is based on the topics covered during the lectures and TA sessions, as well as the chapters of the textbook. The student will be evaluated on the basis of the individual scores achieved on: 1. Problem sets: Delivery and upload of a number of Problem Sets onto the course’s dedicated platform. A maximum of two (2) bonus points will be assigned to students who deliver the solutions to all the problem sets by the specified deadline; these points will be added to the grade obtained in the final exam taken in a call of the summer exam session. This activity is meant to assess knowledge, comprehension skills and competencies during the semester. (Only for students attending the classes and taking the exam in the May-June session) 2. Final exam: The final exam will be composed of (i) a mix of multiple choice questions and true/false questions (4-6 questions in total, weighing between 30% and 40% of the final grade) and of (ii) 4 exercises (weighing between 60% and 70% of the final grade). Through the final exam, the student will demonstrate his/her knowledge of theoretical concepts and how to apply them to real world cases, thus proving that he/she has acquired a good study method, critical skills and the ability to learn, requested to continue autonomously the study of the subject matter. The number of questions within each typology will be communicated to students by the instructor at the beginning of the semester. The failure to achieve at least the score of 18/30 will result in failure to pass the exam. The correct answer to all multiple-choice and true/false questions, as well as the correct resolution of exercises leads to getting 30/30 with the possible awarding of cum laude.

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