Advanced Microeconomics
A.Y. 2023/2024
Learning objectives
The course is designed to provide a rigorous introduction to the conceptual apparatus of modern microeconomics. Its objective is to equip first-year students with the basic analytical tools required to read and understand contemporary literature in theoretical and applied microeconomics and possibly to approach more advanced research topics in this area.
Expected learning outcomes
By attending this course, the students: 1) will obtain a thorough knowledge of the foundations of modern microeconomic analysis; 2) will learn how to interpret and explain a number of economic phenomena central to contemporary market economies; 3) will acquire advanced skills enabling them to apply the relevant methodology, analytical tools, and theoretical apparatus of modern microeconomics to the solution of a number of economic problems (concerning consumers¿ and producers¿ choices, price formation, economic efficiency, and social welfare).
Lesson period: First semester
Assessment methods: Esame
Assessment result: voto verbalizzato in trentesimi
Single course
This course can be attended as a single course.
Course syllabus and organization
Single session
Responsible
Lesson period
First semester
Course syllabus
Unit 1. Consumers and producers
1. Individual decision making: An introduction
- Market economies: commodities and prices
2. Consumer choice theory
- Preferences and utility
- Utility maximization and expenditure minimization
3. Demand theory
- Individual demand functions: Walrasian and Hicksian
- The Slutsky equation: income and substitution effects
- Aggregation
4. Producer choice theory
- Technology: production sets, transformation functions, production functions
- Profit maximization and cost minimization
5. Supply theory
- Individual supply functions
- Cost and supply in the single-output case
- Aggregation
6. Imperfect competition
- Monopoly, monopoly behaviour and monopolistic competition
- Oligopoly: Cournot and Bertrand Competition
- Elements of Game Theory
Unit 2. Competitive equilibrium and Pareto optimality
7. Competitive equilibrium and Pareto optimality: An introduction
8. General equilibrium theory: some examples
- The Edgeworth Box Economy
- The Robinson Crusoe economy
9. General equilibrium theory and welfare economics
- The two Fundamental Theorems of Welfare Economics
- Pareto optimality and social welfare optima
1. Individual decision making: An introduction
- Market economies: commodities and prices
2. Consumer choice theory
- Preferences and utility
- Utility maximization and expenditure minimization
3. Demand theory
- Individual demand functions: Walrasian and Hicksian
- The Slutsky equation: income and substitution effects
- Aggregation
4. Producer choice theory
- Technology: production sets, transformation functions, production functions
- Profit maximization and cost minimization
5. Supply theory
- Individual supply functions
- Cost and supply in the single-output case
- Aggregation
6. Imperfect competition
- Monopoly, monopoly behaviour and monopolistic competition
- Oligopoly: Cournot and Bertrand Competition
- Elements of Game Theory
Unit 2. Competitive equilibrium and Pareto optimality
7. Competitive equilibrium and Pareto optimality: An introduction
8. General equilibrium theory: some examples
- The Edgeworth Box Economy
- The Robinson Crusoe economy
9. General equilibrium theory and welfare economics
- The two Fundamental Theorems of Welfare Economics
- Pareto optimality and social welfare optima
Prerequisites for admission
A reasonable acquaintance with introductory and intermediate microeconomics (consumer and producer theory, partial competitive equilibrium theory) and mathematics for economics is expected.
Teaching methods
The topics dealt with in the course will be thoroughly discussed from an analytical and theoretical viewpoint in a series of lessons. Applications to several issues concerning individual decision-making and market outcomes will be addressed in a series of classes, where the students will have the opportunity to interact with the instructor in analysing the solutions to previously circulated problem sets.
Teaching Resources
Hal Varian Intermediate Microeconomics: A Modern Approach,
Ninth Edition Norton
Supplemental Material made available on ARIEL
Ninth Edition Norton
Supplemental Material made available on ARIEL
Assessment methods and Criteria
A number of unmarked problem sets (UPS) will be handed out over the entire duration of the course. These problem sets will be discussed in class meetings and will be useful to allow correct preparation for the final examination. The overall assessment will be based on one of the following. Either two written examinations (50% and 50% of the final grade) covering half the programme each respectively, or a written final examination (100% of the final grade) covering the whole programme. Regular attendance is encouraged.
SECS-P/01 - ECONOMICS - University credits: 8
Lessons: 64 hours
Professors:
Bosco Davide, Frattini Federico Fabio
Educational website(s)
Professor(s)
Reception:
Lunedì 15:00 - 16:00
Microsoft Teams. I kindly ask for an email prior to the appointment.