The course consists of three parts.

The first is dedicated to reviewing demand and supply. We will show how economic agents’ rational and optimizing behaviour gives rise to demand and supply curves.

In the second part we will (re-)examine how consumers and producers interact and how the outcome of their interaction depends on the market settings. We will compare the outcomes under perfect competition, monopoly and monopolistic competition. To understand the basic ideas of strategic behaviour in oligopolistic markets we will introduce some of the most fundamental concepts of game theory.

Most real world markets, especially markets for consumer goods, are characterized by a certain degree of market power. In the last part of the course we will address the question how producers who possess such market power optimally price their products in order to maximize profit.

After taking the course, students should have a good knowledge of the key microeconomic theories and models and be able to apply these 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 competition, monopoly, oligopoly), to understand the basic concepts of game theory and understand different pricing strategies of firms.

Applied Microeconomics is a course with continuous assessment (PI), therefore attendance is necessary. Two lectures can be missed without excuse, absence in further lectures has to be excused/ explained via email.

• Solving numerical exercises and controlling home assignments at class.

The final grade will be formed by taking into account the results of the student in the

• mid-term exam (35%)
• the final exam as well as her/his (45%)
• in-class participation/homework (20%)

Note: It is necessary to reach the minimum of 60% in the mid-term and in the final exam independently!

(Subject to change) 

If you have a valid registration for the lecture, but will not participate, please deregister during the registration period of LPIS. Your place will be available for other students.

During the registration period, free places are filled according to the “first-come, first-served” principle. After the end of the registration period, the number of places is increased and students on the waiting list will be registered for the lecture based on their progress in their studies.

Attendance in the first session is necessary, absence without valid excuse will lead to deregistration! Any remaining places in the classes will be allocated to students attending the first session according to the waiting list. No places will be allocated by email or by phone.

dominik.walch@wu.ac.at

Consultation:upon request