Bachelor
2019/2020
Microeconomics-2
Type:
Compulsory course (Economics and Statistics)
Area of studies:
Economics
Delivered by:
Department of Theoretical Economics
Where:
Faculty of Economic Sciences
When:
2 year, 1, 2 module
Mode of studies:
offline
Instructors:
Piruza Alieva,
Anastasia Antsygina,
Kirill Bukin,
Sofia Dolgikh,
Guzel Ishmaeva,
Polina Koroleva,
Ilya Krasikov,
Konstantin Makshanchikov,
Голуб Маргарита Николаевна
Language:
English
ECTS credits:
6
Contact hours:
90
Course Syllabus
Abstract
The course examines the organization of markets from a microeconomic perspective, the principles of microeconomic policy and the role of government in allocating scarce resources. The topics include: perfect competition, pricing in the presence of market power, monopolistic competition, oligopoly, game theory and factor markets, general equilibrium and efficiency, markets with asymmetric information, externalities and public goods. The course continues Microeconomics–1; however, it can also be treated as an independent discipline for exchange students. Module 1 (2) of this course corresponds to Module III (IV) of a generic undergraduate course in microeconomics. Prerequisites: Multivariable calculus; Microeconomics–1, including: consumer behaviour, intertemporal choice, uncertainty, production, perfectly competitive markets.
Learning Objectives
- Understand basic real-world microeconomic problems
- Develop critical thinking about economic matters
- Be able to solve stylized microeconomic models
- Evaluate different economic policies and trace how they affect social welfare
- Understand the basic principles of strategic interaction
Expected Learning Outcomes
- Understand basic real-world microeconomic problems
- Develop critical thinking about economic matters
- Be able to solve stylized microeconomic models
- Evaluate different economic policies and trace how they affect social welfare
- Understand the basic principles of strategic interaction
Course Contents
- Introduction: Competitive Profit MaximizationIntroduction: Competitive Profit Maximization
- MonopolyLinear pricing, social costs of monopoly
- Pricing with market powerPrice discrimination, two-part tariff, non-linear pricing, bundling
- Overview of strategic modelsSimultaneous move games: pure and mixed strategies, dominant strategies, Nash equilibrium
- Static oligopolistic competitionCournot, Bertrand with homogenous good, horizontal differentiation, vertical differentiation
- Sequential move gamesBehavioral strategies, subgame perfection, Stackelberg competition
- Repeated gamesGrim triggers, minmax payoff, Folk Theorem, collusion
- Factor markets with market powerFactor markets with monopoly power, factor markets with monopsony power
- General equilibrium and economic efficiencyEfficiency in exchange economy, market trade, equilibrium and efficiency, efficiency in production, production and welfare theorems
- Asymmetric informationQuality uncertainty and the market for lemons, market signaling, screening, hidden action and moral hazard
- ExternalitiesExternalities and efficiency losses, market failures and market interventions, externalities and property rights, common property resources
- Public goodsPublic goods and efficiency, private provision of the public good, free riding, government regulation
Assessment Elements
- Home AssignmentsThere are 3 home assignments in Module 1 ( (with the weights of 5%, 5% and 6% each) and 3 home assignments in Module 2 ( with the weights of 5%, 5% and 6% each) . Late submissions are not accepted and graded with zero points.
- Mid-Module TestIn each module, there is a mid-term exam (its weight in the final grade is 29%). There is no make-up for the mid-term test. If a student misses it without an official excuse, s/he gets zero for this course element. With an official excuse (e.g. illness with a valid medical proof), her or his final test score accounts for 84% (84%) of the Module 1(2) grade.
- Final TestThe final test is a closed book exam (its weight in the final grade is 55%).
