Introduction to Market Economics

Aims

This course provides an introduction to markets, examines what is their role and nature and how they function. It studies market behavior and focuses on the actions and reactions of business firms and consumers in a variety of environments. The impact of different market structures, specifically perfect competition, monopoly and oligopoly, on production and consumption is analyzed.

Prerequisites

Understanding basic mathematical analysis. Basic calculus and differentiation rules.

Learning Outcomes

To master the basic tools of microeconomics: supply and demand analysis and market structure analysis. To understand the analytical foundations for the formulation of a firm's competitive strategy. To provide a general framework for analyzing the role of governments in a market economy.

Syllabus

General description: This course provides an introduction to markets, examines what is their role and nature and how they function. It studies market behavior and focuses on the actions and reactions of business firms and consumers in a variety of environments. The impact of different market structures, specifically perfect competition, monopoly and oligopoly, on production and consumption is analyzed.

Content Delivery

    Course objectives: To master the basic tools of microeconomics: supply and demand analysis and market structure analysis. To understand the analytical foundations for the formulation of a firm's competitive strategy. To provide a general framework for analyzing the role of governments in a market economy. Topics: The course covers, in sequence, the following topics           Economic Efficiency, Buyer Values and Production Costs, Markets, Prices, Demand and Supply. Market structure and firm strategies: Monopoly vs. Perfect Competition Monopoly  Strategies: Price discrimination & Bundling Market Concentration and Market Power Introduction to Game Theory: Static Games & Sequential Games Strategies of Incumbent Firms Structural & Strategic Entry Barriers    Oligopoly  Competition Production & Pricing Dominant firms, Price Fixing: Collusion-Cartels and Vertical Relations      

Coursework And Assignment Details

The evaluation is as follows: Class attendance and participation in the solution of problem sets 10%. Written Exam: 90%.