Microeconomics (advanced) (2016/2017)

Learning outcomes

The course covers topics of consumer theory, production theory, industrial organization, and experimental/behavioral economics. It is divided into three parts.
The first part will analyze economic models of individual decision-making, consumer behavior, and firm behavior.
The second part intends to provide students with rigorous economic tools for the analysis of market structure and market relations.
The third part will introduce concepts of experimental and behavioral economics, paying particular attention to alternative theories of individual choice behavior and of industrial organization.

Individual decision making:
- preferences,
- choices,
- utility function,
- demand theory,
- production.

Markets structures and Organization:
- perfect competition,
- advanced monopoly theory,
- markets for homogeneous/differentiated products,
- collusion.

Experimental and behavioral economics:
- methods of experimental economics,
- external validity issue,
- social preferences (equity, fairness, trust and reciprocity, altruism),
- applications to industrial organization.

Professor Paola Manzini (from the School of Economics and Finance, University of St Andrews) and Professor Marco Mariotti (from the School of Economics and Finance, Queen Mary University of London) will be giving two three-hour lectures on choice theory.

Recommended reading:
• GEOFFREY A. JEHLE and PHILIP J. RENY: “Advanced Microeconomic Theory”, Pearson Education(3rd Edition). The chapters to study are: 1, 2, 3.
• OZ SHY: "Industrial Organization - Theory and Applications", MIT Press 1995. The chapters to study are: 2, 3, 4, 5.
• Details on the papers dealing with experimental/behavioral economics will be given during the course.

Further reading
• JEFFREY CHURCH AND ROGER WARE: "Industrial Organization: A Strategic Approach", McGraw-Hill 2000 (downloadable from elearning).

Written exam (compulsory) & presentation of an article (optional).

STUDENT MODULE EVALUATION - 2016/2017