Microeconomics

Academic year: 2007-2008 Course code module FTEBAAE220 Semester: 1st semester Credits: 6 Study load (hours) 168 Theory (hours): 45,00 Practice/Exercises(hours): 15,00 Other (hours): Part-time program: 1 Instructor(s) Wilfried Pauwels Language of instruction: Dutch Semester exam information: semester exam in January Contract restriction information: 1. Prerequisites *Algemene competenties 1. Required knowledge of economics: Knowledge and competencies acquired in the course Introduction to Economics, first year. 2. Required knowledge of mathematics: Basic techniques of differential and integral calculus; solution of simple optimization problems. *Sequentiality FTEBAAE100 Introduction to General Economics   FTEBAKM110 Mathematics with (Business) Economics Applications 2. Objectives (expected learning outcomes) 1. Students are given a rigorous training in the basic subject areas of microeconomics. 2. Students should be able to use microeconomic concepts in a creative and independent way when discussing economic problems. 3. Course content 1. Behaviour of the consumer. Preferences and utility functions, budget constraint, optimal choice of the consumer, comparative statics, aggregation of demand functions, applications. 2. Production functions and cost functions. Production functions, cost minimization, cost functions. 3. Perfectly competitive markets. Supply functions, competitive market equilibrium, the invisible hand, applications. 4. Monopoly and monopsony. Monopoly (market equilibrium, welfare implications), monopsony, price discrimination, advertising. 5. Oligopolistic markets and Game Theory. Oligopolistic markets (Cournot, Bertrand, dominant firm, monopolistic competition). Game theory (static games, Nash equilibrium, dynamic games). 6. Risk and information. Decision making under uncertainty (expected utility, risk aversion, applications), asymmetric information, auctions. 7. Public goods and externalities. Public goods (definition, efficiency condition). Externalities (definition, Coase's theorem, corrective taxes). 4. Teaching method Direct contact: Lectures Exercise sessions 5. Assessment method Exam: Written, without oral presentation Oral, with written preparation Closed book 6. Compulsory reading – study material D.Besanko and R.R.Braeutigam, 2005, Microeconomics, second edition, John Wiley & Sons, New York. For each chapter of this book Supplements will be put at the disposal of the students. 7. Recommended reading - study material / 8. Tutoring laatste aanpassing: last update: 30/03/2007 14:46 ann.aerts