Applied Microeconomics

Description

Introduction: Applied microeconomics gives you concepts and models to understand and analyze companies' strategic choices when they compete with other companies, and the economic consequences of these. We will deal with companies' strategic choices, such as pricing strategies, quantity competition, entry and cooperation. You will learn how established companies adapt to newcomers, the competitive effects of companies merging, and how companies can cooperate legally and illegally. We will discuss efficiency criteria and the economic justification for competition regulation. Furthermore, the course will address the interaction between innovation and competition, and shed light on issues relating to tenders and privatisation. Course content: • Efficiency criterias • Duopoly and oligopoly theory • Price discrimination • Competition analysis and competition policy • Innovations and investment incentives • Tendering • Privatization Learning outcomes - Knowledge: After completing the course, students must have knowledge of: • what characterizes efficient resource allocation. • central models for static imperfect competition and dynamic oligopoly theory. • established companies' deterrence and adaptation strategies in the face of new entry. • different types of coordinated and non-coordinated cooperation. • various types of price discrimination and pricing strategies for companies that can engage in price discrimination. • the economic rationale for competition policy. • the importance of innovation and incentives to innovate. • what is meant by tendering and privatization of public enterprises. Learning outcomes - Skills: After completing the course, students should be able to: • distinguish between effective and ineffective allocation of resources. • use game-theoretic models to analyze the outcome of strategic situations. • analyze competitive conditions in various industries using models for imperfect competition. • discuss the trade-off the authorities face when assessing price cooperation and innovation cooperation. • explain different forms of price discrimination. • explain arguments for and against tendering. • explain arguments for and against privatisation. General Competence: Students will develop the ability to independently extract information and produce and communicate simple economic analyzes and assessments. Teaching and learning activities: The course is completed with 36 hours of lectures. In addition, digital learning resources such as videos, multiple-choice tests and other exercises will be developed. Software tools: No specified computer-based tools are required. Qualifications: Higher Education Entrance Qualification Disclaimer Deviations in teaching and exams may occur if external conditions or unforeseen events call for this. Required prerequisite knowledge: SØK 3420 Economics I and SØK 3500 Economics II or 3550 Applied Economics, or similar courses. Assessments: Assessments Exam category: School Exam Form of assessment: Written School Exam - pen and paper Exam/hand-in semester: First Semester Weight: 100 Grouping: Individual Support materials: - BI-approved exam calculator - Simple calculator Duration: 3 Hour(s) Exam code: ELE 37871 Grading scale: ECTS Resit: Examination when next scheduled course Type of assessment: Ordinary examination Total weight: 100 Student workload: Activity Duration Comment Teaching 36 Hour(s) Prepare for teaching 60 Hour(s) Individual problem solving 40 Hour(s) Student's own work with learning resources 38 Hour(s) Group work / Assignments 23 Hour(s) Examination 3 Hour(s) Sum workload: 200 Incoming exchange students at BI Norwegian Business School select courses from BI's official semester-specific exchange course lists. BI defines a full semester as 30 ECTS; bachelor courses are typically 7.5 ECTS each (4 per semester) and master courses are typically 6 ECTS each (5 per semester). Course availability, prerequisites, and timetabling are confirmed via BI's International Office and the Learning Agreement process.