MICROECONOMICS

Description

Objectives: 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 Assessment: 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. Teaching Methods: The course includes frontal teaching lessons and exercises carried out in class with the participation of students Prerequisites: Knowledge and understanding: the student is able to understand both the theories and microeconomic phenomena relating to the functioning of markets and the lines that can inspire economic policy actions, in the context of economies with a strong evolutionary dynamics such as contemporary ones. Further attention is paid to the analysis of competitive contexts, to the discipline of competition, to the regulation of the sectors of economic activity for which there are forms that limit competition. The reference methods are inductive, deductive, static and dynamic. Applying knowledge and understanding: the student will have the methodological tools that will allow him to apply the basic economic knowledge acquired during the courses in the work contexts in which he will work. These skills, in addition to being assessed in the final phase in the final verification moments, will be monitored in itinere through intermediate tests provided for each course, which will constitute a fundamental moment of improvement or adjustment of teaching based on the results achieved (both at the level of individual students than at the class group level) but also to verify the acquired preparation. Furthermore, the presence of multimedia contents available on the Moodle platform (videos, slides, exercises, forums, working groups, etc.) will give the possibility to create a permanent interaction between class and teacher, giving the opportunity to verify in real time the hard and soft skills acquired by students. Making judgments: the student acquires methodological tools useful for the analysis and interpretation of microeconomic phenomena, even at an international level, and is able to critically evaluate the institutional context. Communication Skills: the student develops and strengthens communication skills, processing and synthesis of data relating to problems under study, also through the acquisition of specific economic terminology Learning skills: the student will be introduced to a higher level study method, which will allow him to break down problems in their complexity and to manage their solutions in specific applications. 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 Texts: 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). Thesis assignment criteria: The student's genuine interest in economics. Extended Program And Reference Reading Material: Week 1: Demand and Supply; Elasticity; Individual preferences Extended Program And Reference Reading Material: Week 10: Bertrand and Stackelberg models of oligopolistic competition. Recitation. Extended Program And Reference Reading Material: Week 11: Inter-temporal consumption. Uncertainty. Extended Program And Reference Reading Material: Week 12: Market failures; Recitation. Extended Program And Reference Reading Material: Week 2: Utility; Budget constraint; Optimal choice; Individual demand Extended Program And Reference Reading Material: Week 3: Recitation; Utility maximization and comparative statics; Income and substitution effects Extended Program And Reference Reading Material: Week 4: EV (Equivalent variation); CV (Compensating Variation); Consumer surplus; Individual labor supply. Extended Program And Reference Reading Material: Week 5: Production function; Input substitutability; Returns to scale. Extended Program And Reference Reading Material: Week 6: Recitation; Costs functions. Extended Program And Reference Reading Material: Week 7: Cost minimization; Comparative statics. Extended Program And Reference Reading Material: Week 8: Pure competition; Monopoly; Price discrimination. Extended Program And Reference Reading Material: Week 9: Recitation; Game theory; Counot model of oligopolistic competition Intended learning outcomes: Basic algebra. Partial differential calculus, constrained maximisation. Objectives: 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 Assessment: The student will be evaluated on the basis of the individual scores achieved on: 1. Intermediate written test that entitles to bonus points on the final test. 2. Final written test. Through these tests it is intended to test mainly knowledge and comprehension skills. The written tests consist of a mix of multiple choice questions, theory questions and exercises. The goal of the tests is to assess the knowledge and understanding of the teaching material and the student’s autonomy of judgment. In the written tests the student have to demonstrate knowledge of the theoretical notions of teaching, knowing how to apply them in practical cases demonstrating that he has achieved the method of study and the learning ability necessary to continue the study of the subject autonomously. The exact combination of each type of questions will be decided by the lecturer during the course. The failure to achieve at least the score of 18/30 will result in failure to pass the exam. Correct answers to all the questions and the correct execution of all the exercises will result in a score of 30/30 cum laude. In order to attend the mid-term exam students must book using the “learn.luiss.it” platform; booking will be possible within the time span specified on the platform. Any other information about exam or the problem sets can be found on the platform. Teaching Methods: The course includes frontal teaching lessons and exercises carried out in class with the participation of students. Prerequisites: Basic algebra. Partial differential calculus, constrained maximisation. 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 Texts: D.A. Besanko – R.R. Braeutigam, Microeconomia, McGraw-Hill (ultima edizione). For a thorough analysis, see H.R. Varian, Microeconomia, Cafoscarina (ultima edizione). Thesis assignment criteria: The student's genuine interest in economics. Extended Program And Reference Reading Material: Week 1: Demand and Supply; Elasticity; Individual preferences Extended Program And Reference Reading Material: Week 10: Bertrand and Stackelberg models of oligopolistic competition. Recitation. Extended Program And Reference Reading Material: Week 11: Inter-temporal consumption. Uncertainty. Extended Program And Reference Reading Material: Week 12: Market failures; Recitation. Extended Program And Reference Reading Material: Week 2: Utility; Budget constraint; Optimal choice; Individual demand Extended Program And Reference Reading Material: Week 3: Recitation; Utility maximization and comparative statics; Income and substitution effects Extended Program And Reference Reading Material: Week 4: EV (Equivalent variation); CV (Compensating Variation); Consumer surplus; Individual labor supply. Extended Program And Reference Reading Material: Week 5: Production function; Input substitutability; Returns to scale. Extended Program And Reference Reading Material: Week 6: Recitation; Costs functions. Extended Program And Reference Reading Material: Week 7: Cost minimization; Comparative statics. Extended Program And Reference Reading Material: Week 8: Pure competition; Monopoly; Price discrimination. Extended Program And Reference Reading Material: Week 9: Recitation; Game theory; Counot model of oligopolistic competition Intended learning outcomes: Basic algebra. Partial differential calculus, constrained maximisation.