09446 - 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

Module 1 (C Benassi)

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.

Module 2 (S Capacci)

1. 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.

2. Economic efficiency and welfare:

• externalities and the Coase theorem;
• public goods and public choices.

Readings/Bibliography

R.H. Frank, Microeconomia. Comportamento razionale, mercato e istituzioni. McGraw-Hill Italia, Milano, ultima edizione.

F.Delbono e S.Zamagni, Microeconomia, Il Mulino, Bologna, ultima edizione.

Teaching methods

this ia a taught course with classes

Assessment methods

Written test.

Office hours

See the website of Corrado Benassi

See the website of Sara Capacci