MICROECONOMIC ANALYSIS
Obiettivi formativi
The course aims at providing knowledge of methods and topics of advanced microeconomic theory, with focus on choices of individual economic agents (consumers, firms) in competitive environments and in strategic settings. Some elements of competitive equilibrium analysis and welfare will also be discussed.
Risultati di apprendimento attesi
KNOWLEDGE AND UNDERSTANDING: The student will be able to analyze and understand the main phenomena described and analyzed during the course, in relation to the behavior of individual economic agents and the economic mechanisms of production and exchange.
APPLYING KNOWLEDGE AND UNDERSTANDING: At the end of the course, the student must be able to use the tools of theoretical analysis for an advanced understanding of microeconomic phenomena.
MAKING JUDGEMENTS: The student will acquire the ability to judge in an autonomous way the microeconomic problems, also in relation to specific applications.
COMMUNICATION SKILLS: The student will acquire the specific language of microeconomics in order to communicate precisely the concepts learned.
LEARNING SKILLS: The student will learn the methodology of analysis of the main problems related to the microeconomic issues.
Contenuti Del Corso
Consumer Choice
Classical Demand Theory
Aggregate Demand
Production
General Equilibrium Theory
Welfare Properties of Equilibrium
Introduction to the strategic approach.
Testi Di Riferimento
A. Mas-Colell, M.D. Whinston and J.R. Green, Microeconomic Theory, Oxford University Press, 1995
Gibbons R., A Primer in Game Theory, Pearson
Metodologie Didattiche
Lectures, Inverted classes, Practice Classes, Presentations.
Modalità di verifica dell'apprendimento
Final written exam and active participation in class with interactive discussions.
Criteri per l’assegnazione dell’elaborato finale
Interview
Il syllabus affronta temi collegati alla sostenibilità?
Not directly. The strategic analysis of consumers/firms behaviors is indirecty related to sustainability issues.
Settimana 1
Course presentation. Consumption set. Budget Set. Preferences.
Settimana 2
Preferences and Utility. Utility Maximisation Problem.
Settimana 3
Walrasian Demand Correspondence. Indirect Utility Function. Exercises
Settimana 4
The Expenditure Minimization Problem.
The Hicksian Demand Correspondence. Exercises.
Settimana 5
Relation between UMP and EMP. The Kuhn-Tucker conditions (necessary and sufficient). Expenditure function. Law of demand.
Settimana 6
Relationship between Demand, Indirect Utility and Expenditure Function.
Settimana 7
Utility maximization with endowments. Production set and Production Plans. Exercises.
Settimana 8
Strategic interactions: games, extensive-form and strategic-form representation, examples. Prisoners' dilemma.
Settimana 9
Iterated elimination of strictly dominated strategies. Nash equilibrium (pure strategies). Examples and economic applications.
Settimana 10
General Equilibrium Theory: Basic Model and Definitions. Graphical Analysis of General Equilibrium Economies. The Edgeworth Box. Welfare Properties of Walrasian Equilibria. Exercises. First Fundamental Theorem of Welfare Economics.
Settimana 11
Decentralization of Pareto Optimal Allocations and Convexity. Statement and discussion of the Second Fundamental Theorem of Welfare Economics. First Order Condition for Pareto Optimality.