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This course presents students with the foundations of applied microeconomic analysis from the perspective of managerial decision-making.
The course focuses on the following topics: Consumer behavior and demand, firm behavior and production, market equilibrium and strategic interaction (i.e., basics of game theory). The course also covers certain specialized topics and applications concerning firm behavior, such as market power and structure, advertising, product quality, entry and innovation.
The course presents students with the necessary theoretical foundations for subsequent analytical studies of markets and strategic competition and for empirical and econometric analyses of consumer and firm behavior, in spirit of modern industrial organization.
This course consists of two parts: The first part concentrates on microeconomics of consumer and firm behavior. This part also introduces basics of game theory and how game theoretic tools can be used to analyze strategic interdependence. The second part deals with sources of market power, product quality and information. In this part, we also analyze economic mechanisms at work when firms enter markets and when firms make R&D decisions and protect their innovations.
You have the capacity to use microeconomic concepts and methods to analyze and evaluate choices made by consumers and firms, as well as functioning of markets. You have also developed your analytical reasoning skills by working with equations and graphs to analyze micro-economic phenomena and market outcomes.
|After completing the course, you will be able to
- apply microeconomic concepts to evaluate demand and firms' supply choices
- analyze economic transactions that take place through markets
- identify sources of market power
- explain competitive and strategic conduct from the perspective of managerial decision-making.
- develop business strategies for firms in different kinds of environments.
|International Learning Experience
International data sets are used
An intermediate level course in microeconomics is strongly recommended.
|Total Student Workload
134 hours divided into
Scheduled (contact) hours: 30 h
Non-scheduled work: 104 h
Lectures + mandatory exercises + mandatory written assignment.
Kindly note that you are expected to be present at the first lecture session to confirm your participation in the course.
|Literature and Course Material
- Belleflamme, P. & Peitz, M. (2015). Industrial Organization: Markets and Strategies. Second Edition. Cambridge: Cambridge University Press. Chapters 1-6, 12-13, 16, 18-19 and Appendix A.
- Other material, as assigned by the lecturer during the course.
Written assigment (30%)
|Non-degree studies (Open University, JOO and Contract Studies)
Open university quota: 3
Quota for JOO-students: 3