Intermediate Microeconomics

EMEC012S5
EMEC012S6 (BSc Economic and Social Policy, BSc Economics and Business)
(30 credits)
Autumn Term

Lecturer: Emanuela Sciubba

Aims

The purpose of this course is to provide a foundation of intermediate level microeconomic theory. In addition to developing and extending topics familiar to students from the first year, such as consumer and producer theory, the course introduces important concepts such as asymmetric information, game theory, general equilibrium and welfare economics.

Objectives

On successful completion of this course, students should have:

• a critical perspective on the assumptions underlying microeconomic models;
• a good understanding of core microeconomic concepts such as efficiency, welfare, strategic interaction and asymmetric information;
• the ability to apply these concepts to a diverse range of markets and economic settings.

Course Assessment

80% of the final course mark is based on a 3 hour exam in June: the other 20% of the mark is based on a take-home, exam style assignment to be completed over the Xmas vacations.

Both the take-home assignment and the examination in June have the same structure. Each comprises two sections: section A (40%) requires students to answer 3 out of 5 essay-style questions; section B (60%) requires students to solve 3 out of 5 problems.

Reading

Any of the following:

• Varian, Intermediate Microeconomics, Norton, latest edition.
• Katz and Rosen, Microeconomics, Mc-Graw-Hill, latest edition.
• Nicholson, Intermediate Microeconomics and Its Application, latest edition.
• Perloff, Microeconomics, Pearson Addison-Wesley, latest edition.
• Pindyck and Rubinfeld, Microeconomics, Prentice Hall, latest edition.

Lecture Schedule

1-2. Consumer and Producer Theory: a Revision
3-4. Decision making under uncertainty
5-6. Strategic decision making
7-8. Asymmetric Information
9-10. General equilibrium and welfare