MICROECONOMICS (part II)
Luigi Luini
Fall, 1994
Department of Economics
CENTRAL EUROPEAN UNIVERSITY



Course Description

- General competitive equilibrium and production/consumption efficiency.

- Market imperfection (I): Monopoly. Price, quantity and welfare loss. Price discriminations. Natural monopoly and regulation.

- Market imperfection (II): Oligopoly. Cournot duopoly and conjectural variations. The Bertrand model. The Stackelberg Model. Monopolistic competition and the theory of contestable markets.

- Labor market. Work and leisure: time allocation. Labor supply. Overtime pay. Household theory. Labor market equilibria / equilibrium. Monopsonistic power in the labor market.

- Public goods: Pigou taxes; Wicksell- Lindhal prices; Coase bargains; incentives mechanism: Clarke and Groves solutions.

- Intertemporal decisions and uncertainty: introduction.

- Uncertainty: definitions, axioms and theorems.

- Individual optimum under uncertainty. Markets: completeness and incompleteness defined.

- Economics of information: theoretical introduction.

- Economics of information: applications.

Textbooks:

Binger B.R. Hoffman E., Microeonomics with calculus. Harper, 1988

Hirshleifer J. Riley J.G., The analytics of uncertainty and information, Cambridge University Press, 1992



CRC-Curriculum Resource Center
CEU Budapest, Hungary
Modified: May, 1996

Lui_MicroII.W95Econ.v3

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