In this module you will study the theory of consumer’s choice under certainty and uncertainty. You will learn how to solve simple consumer problems both graphically and analytically, and how to analyse intertemporal consumption choice and labour supply.
- Elements of microeconomics of production, including cost minimisation.
- Connections between technology and costs both in the short and in the long run.
- Welfare implications of economic changes.
- Measures of welfare under quasi-linear preferences.
- Use of social surplus as a measure of market efficiency.
- Effects of policy interventions on a market’s social surplus.
- Causes and consequences of price discrimination
- Use of game theory to analyse one-shot Cournot, Bertrand and Stackelberg duopoly models, as well as collusion in oligopoly models.
- First and second fundamental theorems of welfare economics, including the significance of their assumptions and consequences.
- Public-goods supply and its efficiency consequences
- Missing markets and the impact of asymmetric information on market outcomes.
- 40 one-hour lectures
- 18 one-hour tutorials
- Coursework x 2 (25% + 25%)
- Exam, 2 hours (50%)