Advanced Microeconomic Theory – II

·         Baumol’s theory of sales revenue maximisation

·         Marris’s model of the managerial enterprise

·         O. Williamson model of managerial discretion

·         Behavioural model of Cyert and March

·         Derivation of factor demand and supply curves under perfect and imperfect competitions and equilibrium

·         Bilateral monopoly

·         competitive buyer firm and monopoly union

·         technical progress and income distribution

·         Pricing of fixed factors

adding up problem

·         Interdependence in the economy

·         the Walrasian system, existence, uniqueness and stability of an equilibrium,

·         path to general equilibrium in pure exchange and production, 2x2x2 general equilibrium model, prices of commodities and factors

·         criteria of social welfare( growth of GNP, Bentham, cardinalists, Pareto optimality, Kaldor Hicks, Bergson criteria)

·         types of social welfare function

·         Grand utility possibility frontier and the point of bliss

·         Behavioural Economics – Framing effects in consumer choice, uncertainty, time, strategic interaction and social norms

·         Information Technology- Systems competition, problems of complements, lock-in, network externalities and markets, market dynamics, two-sided markets, rights management, sharing intellectual property

·      Externalities- Smokers and non-smokers, Coase theorem, production externalities, market signals, tradegy of the commons

·      Public goods- Providing public goods, free riding and the free rider problem, different levels of public goods, quasilinear preferences and public goods, voting, the Vickrey-Clarke-Groves mechanism

·      Asymmetric information- Market for lemons, quality choice, adverse selection, moral hazard, signalling, incentives, asymmetric information