Lecturer

prof. Clara Graziano clara.graziano@uniud.it

Credits

9 CFU

Department

Department of Economics and Statistics

Aim of the course

An advantage of economics is that it requires the analyst to be explicit about the key elements of the process under consideration. Economic models must carefully identify decision makers, goals, choices and relationship between choices and outcomes. As a result there is a clear linkage between the conclusions one draws from the application of economic reasoning and the assumptions made. This allows one to distinguish between unsupported claims and logically derived propositions. Aim of the course is to make students accustomed to this way of thinking.

Programme

The course will cover the following topics:

Consumer Theory:

• Preferences and Demand
• Elasticity
• Indirect Utility function, expenditure function
• Revealed preferences,
• Choice under uncertainty (expected utility function)

Teory of the Firm:

• Profit maximization
• Cost minimization
• Inputs demands
• Costs functions
• CES production function
• Linear production function
• Production under uncertainty

Market equilibrium

• Perfect competition
• Short run/ Long run equilibrium
• Taxation
• Monopoly
• Oligopoly: Cournot, Bertrand and Stackelberg, with homogenous and differentiated products.

Game theory:

• Nash equilibrium,
• Iterated elimination of dominated strategies ,
• Subgames and Perfect Nash equilibrium
• Finitely and infinitely Repeated games

Information Economics:

• Moral hazard in principal agent models. Moral hazard and insurance.
• Adverse selection

Text Books

Henderson, J. E R. Quandt “Microeconomic Theory, a mathematical Approach, 3rd edition, Mc Graw Hill (H-Q )
Varian, Hal, Microeconomic Analysis .
Gibbons, Robert Game Theory for Applied Economist Princeton University Press 1992.

Another suggested book is:
Jehle and Reny Advanced Microeconomics Theory, (Third edition) Prentice Hall 2011.

Course Valuation

Students may present an article on a topic covered by the course. In such a case the valuation will be: paper presentation 30%, final (written) exam 70%.

Prerequisite

Advanced mathematics.
If you forgot the topics of the undergraduate micro course, please review them before starting the advanced course.