75888 - Microeconomics

Learning outcomes

The successful student should know the basics of microeconomic analysis. In particular, s/he will be able to assess the behaviour of consumers and firms, and how markets work; to identify theoretically relevant market models; to apply microeconomic principles in looking at the real world.

Course contents

Please note: This is an introductory course in microeconomics, which provides the basic analysis of the economic agents' behaviour and the end result of their interaction.

Course content

Part 1

1. An introduction to political economy: Methodological problems; using models; microeconomics and macroeconomics.

2. Theory of consumers' behaviour and general equilibrium in pure exchange:

· preference representation and budget constraints; individual demand: demand functions (marshallian and hicksian) and engel curves; consumers' surplus;

· intertemporal choice and choice under uncertainty;

· general equilibrium in pure exchange; Pareto efficiency and the core; the fundamental theorems of welfare economics;

· introductory remarks on the economics of information: moral hazard and adverse selection.

3. Production and costs:

· theory of production.

· cost theory.

Part 2

4. The economics of markets:

· aggregation and market demand, elasticity and comparative statics;

· perfect competition and monopoly;

· product differentation and monopolistic competition; Chamberlin and Hotelling;

· oligopoly: non cooperative games and Nash equilibrium; the standard models of Cournot, Bertrand and Stackelberg; repeated games and collusion; games in extensive form and entry barriers;

· natural monopoly and contestability; introductory remaks on the economics of regulation.

. factor markets

5. Economic efficiency and welfare:

· externalities and the Coase theorem;

· public goods and public choices.

Readings/Bibliography

R.H. Frank e E. Cartwright, Microeconomia. McGraw-Hill Italia, Milano, ultima edizione.

Teaching methods

Traditional lectures.

Assessment methods

The exam will be online only using the platforms eo.unibo.it and zoom. Zoom will be used for identifying and monitoring students. Please prepare a valid ID before logging into the exam and log in on eol and zoom at least 15 before the start of the exam. Students connecting to zoom after the scheduled beginning of the exam won't be admitted and thus will not be allowed to take the exam.

The webcam (PC’s or laptop’s should be fine) should, during the exam, frame the student, the desk and part of the room. It is recommended to make some tests before sitting the exam.

At the beginning of the exam students will be asked to join a "breakout room" in zoom.

For the entire duration of  the test the microphone should be open and the computer's screen shared.

To access the online exam sheet students will need a password that will be provided at the beginning of the tests using the chat on zoom. The password should be written on each sheet of paper used to answer exam questions.

The exam can either be taken with two partials right after the end of lectures, or a unique final exam in June and September. The second partial can be taken only by students that passed the first one.

The partial exam consists of 2 open questions to be answered out of a choice of 3 questions. Time allotted: 30 minutes.

The full exam consists of 3 open questions to be answered out of a choice of 4 questions. Time allotted: 45 minutes.

If students answer all questions, then only the first 2 (in case of partials) or 3 (in case of full exam) will be considered.

Questions will be awarded 15 point in case of partials and 10 in case of the full exam.

Answers will have to be handwritten with pen and paper, photographed and uploaded on EOL.unibo.it within the allotted time. Missing to upload an answer corresponds to not answering the question. It is not possible to upload questions after the deadline or send answers via e-mail after the exam.

During the exam, if a student’s internet gets disconnected, the written test will be transformed into an oral (online) exam, time, date and platform (Zoom or Teams) of which will be defined at a later stage.

Grades of questions as well as comments on answers will be available on eol.unibo.it.

Grading is as following:

• <18 fail

• 18-23 sufficient

• 24-27 good

• 28-30 very good

• 30L excellent

Teaching tools

E-learning website.

Office hours

See the website of Rainer Andergassen