Syllabus Information

5.1. Methodological overview

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

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.

Platform Moodle 2

5.2. Learning tasks

1. Theory classes:  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 0.3. Methodology: Tutorial and complementary activities

4. Personal work: Credits 3.3. Methodology: Solution of exercises. Use of ITCs.  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 and subsidies

3.5 International markets and tariffs

3.6 General equilibrium: welfare theorems

Part II: Market Power

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. Market failures

6.1. Markets with asymmetric information

6.2. Externalities and its correction

6.3. Common property resources

6.4. Public goods