FIRM AND MARKET ECONOMICS (ADVANCED MICROECONOMICS: PRODUCTION AND MARKETS)

Knowledge and understanding

The course aims at presenting the advanced economic models about production (in particular, the canonical dual theory of production under perfect competition) and the main (advanced) models of imperfect competition. A relevant part of the course resorts to game theory tools;

Applying knowledge and understanding

The student has to be able to apply the theoretical knowledge acquired in order to analyse specific case studies (concerning production choice and market strategies), and numerical exercises. The case studies and the numerical exercises are provided by the teacher during the lectures;

Making judgments

The student will be able to understand which theoretical model is the most appropriate to describe and analyse real situation. He/she will be also able to understand pros and cons of different models, along with their weakness and strength points;

Communication skills

During the course the student has to improve and develop the knowledge of a technical and economic language (with particular reference to production and market strategies) ; the student has to use it in an appropriate way as an useful instrument of communication, especially with the aim of introducing herself /himself in the job market;

Learning skills

The student will be able to understand which theoretical concept is appropriate to deal with specific cases from the real world and from experimental evidence: He/she will be able to solve and analyse numerical exercises.

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Module Title: Canonical dual theory of production.

Teaching program: (1) Technology and production; (2) Duality in production theory theory; (3) market allocation under perfect competition in the short- long- run.

Reference text: (1) P. Coto-Millan Utility and Production, Phisica Verlag - Springer, Heidelberg, 2003 (only pp. 93-168, and related exercises in the last Part). Additional papers delivered by the teacher.

II MODULE (3 CFU)

Module Title: Imperfect competition

Teaching program: (4) Monopoly and monopolistic competition; (5) price discrimination; (6) advertising models; (7) non profit-oriented firms (behavioural theory of firm, managerial firms, labour-managed firms, public-sector firms); Uncertainty.

Reference text: Gravelle and Rees, Microeconomics, Pearson (selected Chapters). Varian, 2008, capp. 12, 13

III MODULE (3 CFU)

Module Title: Game theory applied to market behaviour

Teaching program: (8) Game theory (basic and advanced topics, limited to non-cooperative games); (9) firm’s choice under interdependence.

Reference texts: (3) L. Lambertini, Game Theory in the Social Sciences: A reader friendly Guide, Routledge, Londra 2011 (without Ch. 10).

1. P. Coto-Millan Utility and Production, Phisica Verlag - Springer, Heidelberg, 2003 (only pp. 93-168) ; Gravelle and Rees, Microeconomics, Pearson (selected Chapters); (3) L. Lambertini, Game Theory in the Social Sciences: A reader friendly Guide, Routledge, Londra 2011 (without Ch. 10).
2. Gravelle and Rees, Microeconomics, Pearson (selected Chapters)
3. L. Lambertini, Game Theory in the Social Sciences: A reader friendly Guide, Routledge, Londra 2011 (without Ch. 10);
4. 4. Hal Varian. 2008. Intermediate microeconomics. A modern Approach. 8th eds. Capp. 12, 13, 17,18, 30, 35, 37.