Microeconomics

Description

The course aims to provide a thorough introduction to microeconomic theory of choice. Starting from the basic concepts of “preference” and “choice under risk”, we will study market behavior and strategic interaction among economic agents. About the former, we will study optimal behavior under different market structures (perfect competition, monopoly, and oligopoly) and mechanisms (auctions, voluntary contribution schemes). About the latter, we will delve behind the standard concepts of game theory, by incorporating behavioral arguments (e.g., bounded rationality, social preferences) into the traditional approach.

Compétences visées

• Understanding the individual behaviors and the trade-offs of the economic agents and determine their optimal choices;
• Mobilizing simple mathematical tools to model and quantifying the decisions of these economic agents;
• Characterize and interpreting real economic situations in terms of market structures and strategic behavior of economic agents,
• Characterising and interpreting consequences of asymmetric information and externalities in terms of market failure and inefficiency.
• Analyzing the results obtained and developing a critical mind about these results, being aware of the main limitations of the microeconomic analysis and its area of relevance

Modalités d'organisation et de suivi

Teaching methods

1. during the first part of each lecture (2 hours), we will introduce a specific microeconomic problem/issue together with the traditional model widely used to solve/analyze this problem/issue;
2. during the second part of each lecture (30 minutes), we will run an economic experiment (either in the classroom or in the laboratory of experimental economics – computerized), so as to test the model through the choices/behavior of students attending the course; during those lectures where no economic experiment is scheduled, the lecturer will discuss examples of behavioral applications of the studied theoretical model;
3. at the end of each lecture (30 minutes), we will discuss the results of the experiment, and focus on possible extensions of the model with respect to its “traditional” version.

Discipline(s)

• Sciences de gestion et du management
• Sciences économiques

Bibliographie

• Hal R. VARIAN (2010): Intermediate Microeconomics: A Modern Approach, WW Norton & Co., 8th edition.
• Academic papers about behavioral economics.
• Slides and experimental data provided by the Lecturer

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