B2201 - Modeling Individual Behaviour

Learning outcomes

At the end of the class, the student has a working knowledge of the basic tools and results of the classical microeconomic theory for perfectly competitive environments. In particular, the class focuses on: - Consumer choice: utility maximization, expenditure minimization and the revealed preference approach. - Choice under uncertainty and insurance decisions. - Firm choice: profit maximization and cost minimization. Finally, the student is able to apply these theoretical tools to econometric analyses.

Course contents

ORGANIZATION OF LECTURES:

The course is organized with all lectures taught in presence. Exams are in presence too.

COURSE CONTENT:

PART I: Consumer behavior
1. Utility maximization
2. Expenditure minimization
3. Duality and comparative statics
4. Decisions under uncertainty: Expected utility theory

PART II: Firm behavior 
5. Technology and production function
6. Profit maximization
7. Cost minimization
8. Cost functions, duality

Readings/Bibliography

The main textbook is Jehle G.A. and P. Reny: "Advanced Microeconomic Theory, Prentice Hall, 2010.

Further readings:

• D.M. Kreps: "A Course in Microeconomic Theory", Prentice Hall, 1990
• A. Mas-Colell, M.D. Whinston, J.R. Green:"Microeconomic Theory", Oxford University Press, 1995 (more advanced)
• H. R. Varian: "Microeconomic Analysis", third Edition 1992, W.W. Northon & Co. Inc.

Slides and digital boards used and done in class, respectively, will be uploaded on Virtuale

Teaching methods

Lectures and tutorials.

IMPORTANT: As for mathematical prerequisites, a good knowlwdge of the following topics is needed:

• linear algebra
• functions of many variables
• differential calculus
• optimization subject to constraints

Students who lack such prerequisites are invited to catch up as soon as possible by attending the crash-course in Mathematics and by studying the mathematical appendices of the above-listed texts.

Assessment methods

The course grade will be determined entirely by a final written examinamination, whose duration is approximately 2 hours.

Approximately two-thirds of the final exam will consist of analytical exercises, while the remaining one-third will consist of theoretical questions.

The final mark is graduated as follows:
- <18: failed
- 18: sufficient
- 19-23: satisfactory
- 24-26: good
- 27-29: very good
- 30 e lode: excellent

The final grade can be rejected and the exam cam be retaken, but only once.

The use of the calculator is normally not allowed.

The use of artificial intelligence (AI) is prohibited. Any use of AI constitutes a violation of academic integrity.

Teaching tools

Theory will be complemented by tutorials: three extra hours to be added to the ordinary time schedule.

In class, the tutor will solve exercises of past exams.

Students with learning disorders and\or temporary or permanent disabilities: please, contact the office responsible (https://site.unibo.it/studenti-con-disabilita-e-dsa/en/for-students ) as soon as possible so that they can propose acceptable adjustments. The request for adaptation must be submitted in advance (15 days before the exam date) to the lecturer, who will assess the appropriateness of the adjustments, taking into account the teaching objectives.

Office hours

See the website of Nadia Burani