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.
Learning Outcomes
Teaching method
Lectures
Aulaweb
Yes ☐ No ☐
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: http://www.economia.unige.it/index.php/il-dipartimento/personale/docenti-ad-economia/77-anna-bottasso
ANNA BOTTASSO (Presidente)
GABRIELE CARDULLO
Term: 1°
19 september - 15 december 2016
APPLIED MICROECONOMICS
Assesment method
Exam ☒ written ☐ oral
Resit
No limits.
Prerequisites
Basic Microeconomics.
Duties
Attendance is not compulsory but encouraged