Intermediate microeconomics (BØK365)

Content

1. Market structures: Consumer theory; Producer theory; Equilibrium and welfare; Market power and imperfect competition

For example: How do firms optimize under imperfectly competitive market structures? How can one characterize the strategic elements of firm behavior? Which price equilibria emerge under various market configurations? What are the implications for consumer welfare? What is the outcome in terms of overall economic efficiency?

2. Market failures: Externalities, public goods, Information asymmetry.

What is the fundamental source of the market failure? What are the consequences for consumers, producers, and economic efficiency? To what extent does the market failure require government intervention? How can one correct the market failure?

3. Steps towards a bachelor thesis: From research questions to data analysis

This includes: How to formulate and motivate a research question in economics; Tools for conducting research projects: statistical analysis, regression, numeric simulations.

Specific sub-topics and the presentation sequence may vary from year to year, while the core themes discussed above are maintained. For further details, students should consult the official course syllabus posted on Canvas prior to the start of the semester.

Learning outcome

Knowledge

Upon completion of the course, students will gain:

• An understanding of central microeconomic concepts, theories and models, which form the basis of the course and the science of economics
• The ability to see the complexity and scope of the determinants of economic behavior in consumers, producers and other types of microeconomic agents
• Formal knowledge and economic intuition regarding the formalization of models of the decision-making processes of microeconomic agents
• Basic programming in R and Excel

Skills

Upon completion of this course, students will be able to:

• Use different theories and models to analyze what drives economic actors in different situations.
• Critically evaluate and reflect upon key assumptions of individual microeconomic theories and models, and the science of economics in general.
• Identify the resource constraints, opportunity costs and cost-benefit trade-offs that are either explicitly or implicitly associated with any microeconomic decision-making context.
• Apply microeconomic tools as a basis for evaluating and developing economic decision-making strategies in the private and public sectors.
• Pursue microeconomic analysis as part of a bachelor thesis.
• Formulate a research question and state the hypotheses to test.
• Use Excel and R to run numerical simulations, solve equations, conduct statistical and regression analysis.

Required prerequisite knowledge

Recommended prerequisites

Exam

Coursework requirements

Course teacher(s)

Course coordinator:

Course coordinator:

Study Program Director:

Method of work

There will be about 4 hours of lectures per week. Lectures are given in English. Lecture notes will NOT be provided beforehand. While not mandatory, it is highly recommended that students attend all lectures and create their own complete sets of lecture notes.

To help students learn the course material and prepare for the exam, about 3-5 group problem sets will be provided during the semester. The problem sets will not be graded, but every group must complete all problem sets to be allowed to sit for the individual final exam. Moreover, the final individual exam questions will be adapted from the problem set. Written solutions to the problem set will not be provided, however, the course teaching assistant will hold office hours to discuss problem set questions. You can work on these in groups and can use any online resources (e.g., ChatGPT) to help you with the questions.

Estimated hours of effort for the course:

• Lecture attendance: 46 hours
• Individual study of course material: 80 hours
• Problem sets: 70 hours
• Discussion sessions and office hours: 20 hours
• Group research project: 30 hours
• Miscellaneous (supplementary material/problems, etc.): 20 hours
• Examination: 4 hours

Total: 270 hours

Open for

Course assessment

Literature