The aim of the course is to provide the theoretical instruments that allow students to understand the rationale of microeconomic choices made apart and in strategic interaction frameworks by economic agents. Students will learn how to solve optimization problems (free and constrained) which will be applied to consumer and firm theory. Economic choices when strategic interaction is present will be analyzed with the game theory approach.
The objective of the course is to provide the theoretical instruments which allow students to understand the rationale of microeconomic choices made apart and in strategic interaction frameworks by economic agents. Students will learn how to solve optimization problems (free and constrained) which will be applied to consumer and firm theory. Economic choices when strategic interaction is present will be analyzed with the game theory approach.
AIMS AND LEARNING OUTCOMES
- Knowledge and understanding. Students should obtain the theoretical and methodological knowledge that allows them to understand the rationale for economic choices taken by isolated and interacting agents.
- Applying knowledge and understanding. Students should be able to apply acquired knowledge and to solve problems associated to decision-making theory.
- Making judgments. Students should obtain the skills needed to independently tackle and solve problems, also in novel settings.
- Communication skills. Students should learn technical language and economic terminology in order to properly communicate with field experts.
Learning skills. Students should develop learning abilities in order to master economic theory both for academic and job markets.
Introduction. Mathematical tools: static optimization (free and bounded) techniques.
Part I. Firm theory.
Technology and the production function, cost minimization, optimal production, firm response functions, comparative statics, long run choices, multiproduct firms.
Part II. Market Structure.
Perfect competition in the short and long run, monopoly theory, price discrimination, monopolistic competition.
Part III. Strategic Interaction.
Game theory, Nash equilibrium, sub-game perfect Nash equilibrium, sequential games, repeated games, Folk theorem, Oligopoly theory: Cournot, Bertrand, Stackelberg, collusion and entry deterrence.
Part IV: Consumption theory.
Utility theory, primal and dual approach, response functions, comparative statics, consumer welfare, compensative and equivalent variation, consumer surplus.
F. Cowell “Microeconomics”, Oxford University Press. (Program details will be posted on Aulaweb
Ricevimento: Wednesday 10.30
ANNA BOTTASSO (President)
L'orario di tutti gli insegnamenti è consultabile su EasyAcademy.
Exam ☒ written ☐ oral
Attendance is not compulsory but encouraged