The first part of the course reviews market equilibrium under perfect competition and monopoly and covers selected issues of imperfect competition (such as price discrimination). The second part of the course provides an introduction to the fundamentals of game theory. The third part focuses on intermediate markets forms (oligopoly, monopolistic competition). The fourth part is concerned with reasons for market failures.

After this course students should have a good knowledge of the key microeconomic theories and models and be able to apply them to real world issues and questions of economic policy relevance. They should be able to distinguish and assess the consequences of alternative market structures (perfect and imperfect competition), to analyze the implications of market interventions, and to identify causes (and possible cures) of market failures.

Lecture and Presentation, Quizzes, Exercises

i) Quizzes: 40% ii) Exercises and Class Participation: 10% iii) Final Exam 50%

If all classes in ‘Applied Microeconomics’ are fully booked, a waiting list will be provided from September, 22nd (2p.m.) to September, 26th (11:59)/2011 on the learning platform https://learn.wu.ac.at/warteliste_11w/angewmikro_index . We will try to allocate all vacant seats until September, 28th 2011, but nevertheless we cannot ensure a seat for all placed students on the waiting list. Please note, that we will not take into consideration any placements on the waiting list by students who are already registered for one of the classes through the regular registration process on LPIS. Any vacant seats in the classes will only be allocated through the waiting list – neither via email nor by phone nor in the 1st course session.

1	Author: Pindyck, R.S. and Rubinfeld, D.L. Title: Microeconomics Publisher: London et al.: Pearson Edition: 7. Edition Year: 2009 Content relevant for class examination: Yes Type: Book

Wolf Heinrich Reuter Institute for International Economics, UZA 3, stair 2/3 E-mail: Wolf.Reuter@wu.ac.at

Unit	Date	Contents
1		Review, Perfect Competition
2		Imperfect Competition: Monopoly
3		Imperfect Competition: Monopoly / Monopsony
4		Imperfect Competition: Price Discrimination
5		Imperfect Competition: Bundling and Coupling
6		Game Theory and Competitive Strategy
7		Game theory and Competitive Strategy
8		Monopolistic Competition and Oligopoly
9		Monopolistic Competition and Oligopoly: Collusion and Cartels
10		Market Failures: Asymmetric Information
11		Market Failures: Externalities and Public Goods
12		Final Exam