Syllabus

Title
5631 Applied Microeconomics
Instructors
Gergely Hajdu, Ph.D.
Contact details
gergely.hajdu@wu.ac.at
Type
VUE
Weekly hours
2
Language of instruction
Englisch
Registration
08/16/23 to 08/23/23
Registration via LPIS
Notes to the course
Subject(s) Bachelor Programs
Applied Microeconomics
Dates
Day Date Time Room
Monday 09/04/23 01:00 PM - 04:00 PM TC.5.03
Tuesday 09/05/23 01:00 PM - 04:00 PM TC.5.03
Thursday 09/07/23 01:00 PM - 04:00 PM TC.5.03
Friday 09/08/23 01:00 PM - 04:00 PM TC.5.03
Thursday 09/14/23 01:00 PM - 04:00 PM TC.5.03
Friday 09/15/23 01:00 PM - 04:00 PM TC.5.03
Monday 09/18/23 01:00 PM - 04:00 PM TC.5.03
Wednesday 09/20/23 01:00 PM - 04:00 PM TC.5.03
Monday 09/25/23 01:00 PM - 04:00 PM TC.0.02

On this page:

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Contents

Microeconomics studies how individual market participants, like households and firms, make their choices from the alternatives available to them. It also studies how such choices interact in the market to determine prices and resource allocations. A thorough understanding of microeconomics will be useful for any economic course students will take in the future and will provide an invaluable analytical framework for addressing a number of economically relevant questions. Examples of such questions are the following: how do firms set wages for their employees? How do firms set prices for their products? Should the government regulate monopolistic firms?

The first half of the course is devoted to the study of consumer and producer theory and it will illustrate the ideal circumstances under which the market solves the allocation problem and in which sense. The second half of the course is devoted to those problems, which arise when those ideal circumstances fail to exist and it will carefully discuss whether some form of government intervention should be invoked to improve upon the market allocation. Some game-theoretical concepts, which help model the interaction between economic agents, will be introduced.

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Learning outcomes

Having graduated this course, the students should be able to:

  • Express their opinions with regard to the main topics addressed by microeconomic theory and apply this theory to practical examples;
  • Differentiate between different market forms (perfect competition, monopoly, monopolistic competition and oligopoly) and derive the optimal price and output decisions depending on the market structure;
  • Analyse strategic behaviour in different market situations and evaluate how firm and social outcomes vary with differing market forms;
  • Recognize situations which give rise to market failure and make suggestions with regard to its aversion.

This lecture also requires from the students to develop the following abilities:

  • To apply theoretical concepts to practical examples;
  • To use analytical methods for the solution of diverse problem sets (e.g. finding the optimal decision for a given stakeholder using mathematical derivations);
  • To present and explain complex theoretical concepts.
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Attendance requirements

Applied Microeconomics is a lecture with interactive elements (VUE), therefore attendance is necessary. 30% can be missed without excuse, absence in further parts has to be excused/ explained via email.

 

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Teaching/learning method(s)

The course aims to achieve the aforementioned outcomes through:

  • Interactive presentations (both from the lecturer and the students themselves);
  • Discussions of the topics covered;
  • Solutions of problem sets with numerical examples.
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Assessment

A student's grade in this course will be a weighted average of his/her performance on class, Multiple-Choice Questions after class, Assignment solutions and the Final exams.

The weights are as follows:

  • MC Questions: 10%;
  • On-class performance: 10%;
  • Assignments: 30%;
  • Final Exam: 50%.

In case one absolutely can't attend in person she/he should send me some proof.

Grading scheme:

100% - 90% = Excellent
 89% -  80% = Good
 79% -  70% = Satisfactory
 69% -  60% = Sufficient
           <59% = Fail

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Prerequisites for participation and waiting lists

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.

Registration for the lecture cannot be guaranteed. Any student dropping out of the course who has already submitted a gradable task will receive a negative grade.
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Readings

Please log in with your WU account to use all functionalities of read!t. For off-campus access to our licensed electronic resources, remember to activate your VPN connection connection. In case you encounter any technical problems or have questions regarding read!t, please feel free to contact the library at readinglists@wu.ac.at.

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Recommended previous knowledge and skills

The course presumes that students have a thorough knowledge of elementary algebra, such as solving linear equations, rearranging algebraic expressions and depicting functions.

(In case you need some help, check out this site.)

Knowledge of basic calculus is not a strict requirement, although it would be tremendously helpful.

Because of the crucial role of marginal reasoning in microeconomics, during the course we will often make use of the tools of differential calculus.

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Availability of lecturer(s)

Office hour: by appointment, please send an e-mail to gergely.hajdu@wu.ac.at

In case you send me an e-mail, please, always write "SummerUni2023" in the subject. 

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Other

Topics Planned

Readings

Introduction

 

Introduction

BB1,BB2 - PR1,PR2

Consumer Theory

 

Preference and Utility

BB3 - PR3

Consumer Choice

BB4 -PR4

Theory of Demand

BB5 - PR4

Producer Theory

 

Production

BB 6-7, PR 6,8

Cost Minimization

BB 7-8, PR 7

Market Structure and Government Intervention

 

Perfectly Competitive Markets

BB9, PR9

Welfare and Government Intervention

BB10

Monopoly

BB11, PR10

Game Theory

BB14, PR13

Capturing Surplus, Oligopoly

BB12-13, PR 12

Advanced Topics (if time allows)

 

Decisions under Uncertainty

BB15, PR5,17

General Equilibrium

BB16, PR 16

Externalities

BB17, PR16

Public Goods

BB17, PR16
Last edited: 2022-12-04



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