Intermediate Microeconomics

The objective of the Microeconomics III course is to introduce students to the various representations and standard models of imperfect competition in microeconomics. In particular, it addresses monopolistic, oligopolistic, and collusive market situations, analyzing their effects on the equilibrium achieved and the deviation from social optimum.

 

The lectures are accompanied by tutorials (TDs), which will allow students to apply the models covered in the course.

 

Registration dates 20 November 2024 03 December 2024
Course dates 13 January 2025 11 April 2025
Registration is now closed
Intermediate Microeconomics

Learning outcomes

  • Understand the relationships between Pareto Optimum and Walrasian Equilibrium.
  • Comprehend the economic concepts of Walrasian General Equilibrium and Pareto Optimum.
  • Understand how competition can be viewed as a series of market states, an active competitive process among firms, or as a self-regulating mechanism for these markets.
  • Gain a comprehensive understanding of the main imperfect competition markets.
  • Appreciate the outcomes and descriptive models of competition in Cournot, Bertrand, Cournot-Stackelberg, and Bertrand-Stackelberg duopoly situations.
  • Describe the following forms of competition: Marshallian Perfect Competition (CPP), simple and discriminating monopolies, surplus theory; evaluate the advantages (or disadvantages) of CPP compared to other market forms; and understand the rationale behind competition laws, abuse of dominant position, and antitrust laws.
  • Apply analytical, graphical, and mathematical tools to address the above objectives.

Course content

Chapter 1: Introduction to the Course Plan and Objectives
Chapter 2: Marshallian Competition
Chapter 3: Monopolies and Lerner’s Equation
Chapter 4: Surplus Theory
Chapter 5: Walrasian Equilibrium and Pareto Optimum
Chapter 6: Cournot Duopoly
Chapter 7: Cournot Duopoly (Part 2)
Chapter 8: Bertrand Duopoly
Chapter 9: Bertrand Duopoly (Part 2)
Chapter 10: Cournot-Stackelberg and Bertrand-Stackelberg Duopolies

More information

Prerequisites

  • Mastery of utility maximization under budget constraints (Lagrangian).
  • Mastery of profit maximization principles.
  • Mastery of cost minimization principles.
  • Understanding of price elasticity of demand and supply.
  • Understanding of cross-price elasticity of demand.
  • Understanding of income elasticity of demand.
  • Mastery of the concepts of marginal rate of substitution, technical rate of substitution, and elasticity of substitution.
  • Understanding the concepts of rational choice for consumers and producers.
  • Mastery of indifference curves, iso-production curves, and iso-profit curves.
  • Ability to construct demand and supply functions.
  • Mastery of the various cost functions of a firm (total cost, average cost, marginal cost, etc.), their meanings, and their graphical representations.

It is required to have completed Microeconomics I and II.

 

 

 

 

Please check with your home university for credit recognition.