This course will explore the decision making of economic agents (consumers and firms), how they respond to changes in the opportunities and constraints that they face and how they interact in markets. We will begin by studying the theories of the consumer and the producer. Then we will combine both in the study of individual markets, including perfect competition, monopoly, monopsony, oligopoly, etc. The theoretical framework is used as a tool to ask questions and to set up and solve qualitative and quantitative problems that allow us to think analytically about the real world.
Session 1: Consumer Behavior
Session 2: Uncertainty and Consumer Behavior.
Session 3: Production and Cost of Production
Session 4: Profit Maximization and Competitive Supply. Group 1’s Paper Presentation.
Session 5: The Analysis of Competitive Markets. Group 2’s Paper Presentation.
Session 6: Midterm Exam and Market Power: Monopoly and Monopsony
Session 7: Pricing with Market Power Group 3’s Paper Presentation.
Session 8: Monopolistic Competition and Oligopoly Group 4’s Paper Presentation.
Session 9: Game Theory and Competitive Strategy
Session 10: Markets for Factor Inputs Group 5’s Paper Presentation.
Session 11: Investment, Time, and Capital Markets Group 6’s Paper Presentation.
Session 12: Revision
Performance will be evaluated on the basis of a group presentation, a midterm exam and a final exam, weighed as follows:
- Group presentation: 20%
- Midterm exam: 30%
- Final exam 50%
Pindyck, R.S., and Rubinfeld, D.L., Microeconomics, Prentice Hall, 8e