Syllabus Information

5.1. Methodological overview

The learning process that has been designed for this course is based on the following activities:

1. Participative lectures. The professor will explain the basic course content. The student must supplement the explanations with the recommended reading.

2. Practical classes. Students will solve practice exercises, always under the supervision of the professor. This will be done in smaller groups to facilitate the participation of each student.

5.2. Learning tasks

The programme offered to the students to help them achieve the learning results includes the following activities:

1:

1. Lectures:

● Credits 1.2.

● Methodology: Class attendance and participative problem-solving.

2. Practical classes:

● Credits: 1.2

● Methodology: Class attendance, problem-solving and case studies.

3. Tutorials and seminars:

● Credits: 0.6

● Methodology: Tutorial and complementary activities.

4. Personal work:

● Credits: 3

● Methodology: Problem-solving. Use of ICTs. Preparation of assignments and exams.

5.3. Syllabus

Lesson 1: Introduction to market theory

1.1. Objectives of market theory

1.2. Theory of the firm: Basic concepts

1.3. Profit maximization and market structure

Part I: The analysis of competitive markets

Lesson 2: Equilibrium in competitive markets

2.1. Characteristics of competitive markets

2.2. Marginal revenue and marginal cost. The firm’s demand curve

2.3. Profit maximization and short-run supply curve

2.4. Short-run competitive market equilibrium

2.5. Long-run supply curve

2.6. Long-run market equilibrium

Lesson 3: The analysis of competitive markets

3.1. Consumer and producer surplus

3.2. Welfare: efficiency in a competitive market

3.3. Government intervention by means of price controls and production quotas

3.4. Government intervention by means of taxes, subsidies and tariffs

3.5. International trade and tariffs

3.6. General equilibrium: Welfare Theorems

Part II: Market Failures

Lesson 4: Monopoly theory

4.1. Introduction: market power

4.2. Equilibrium and market power in monopolies

4.3. Welfare: the social costs of market power

4.4. Government intervention by means of taxes, subsidies and regulation

4.5. Pricing with market power

Lesson 5: Oligopoly theory

5.1. Oligopoly and strategic interaction

5.2. Introduction to Game Theory: Nash equilibrium

5.3. Simultaneous competition in quantities: Cournot model

5.4. Simultaneous competition in prices: Bertrand paradox

5.5. Solutions to Bertrand paradox: product differentiation and collusion

5.6. Sequential competition: Stackelberg model

5.7. Welfare in oligopolies

Lesson 6. Other market failures

7.1. Markets with asymmetric information

7.2. Externalities and its correction

7.3. Common property resources

7.4. Public goods

5.4. Course planning and calendar

Calendar of actual sessions and presentation of works It has been estimated that a student will spend an average of 150 hours of effective work for optimally preparing this course. These hours include both class-work and attendance and homework/exam preparation. The student is strongly recommended to distribute this preparation time evenly throughout the term.

5.5. Bibliography and recommended resources

[BB: Bibliografía básica / BC: Bibliografía complementaria]

• [BB] Katz, Michael L.. Microeconomía intermedia / Michael L. Katz, Harvey S. Rosen, Wyn Morgan . - 2ª ed. Madrid [etc.] : McGraw-Hill, cop. 2007
• [BB] Pindyck, Robert S.. Microeconomía / Robert S. Pindyck, Daniel L. Rubinfeld ; traducción y revisión técnica, Esther Rabasco Espáriz . 8ª ed. Madrid : Pearson Educación: Prentice-Hall, 2013
• [BC] Frank, Robert H.. Microeconomía intermedia : análisis económico y comportamiento / Robert H. Frank . - 7ª ed. Madrid [etc.] : McGraw-Hill, cop. 2009
• [BC] Gravelle, Hugh. Microeconomía / Hugh Gravelle y Ray Rees . 3ª ed., reimp. Madrid : Pearson, 2007
• [BC] Nicholson, Walter. Microeconomía intermedia y aplicaciones / Walter Nicholson ; revisión técnica Juan Carlos Zapatero, Fernando Esteve . - 9ª ed. Madrid [etc.] : Thomson, 2006
• [BC] Varian, Hal R.. Microeconomía intermedia : un enfoque actual / Hal R. Varian ; traducción de Mª Esther Rabasco y Luis Toharia . 9ª ed., [reimp.] Barcelona : Antoni Bosch, D.L. 2015