Coming soon
Advanced Microeconomic Theory- II
1. To orient the students with various managerial and behavioural theories of firm
2. To acquaint the students with general equilibrium and welfare economics
3. To equip students with the knowledge of market failure
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Course Code |
Course Title |
Learning outcome (at course level) |
Learning and teaching strategies |
Assessment Strategies |
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24DECO 811 |
Advanced Microeconomic Theory-II (Theory) |
Students will: CO145: analyze different managerial and behavioral theories of the firm. CO146: analyze factor pricing and income distribution CO147: analyze general equilibrium and welfare economics. CO148: analyze behavioral economics and information technology CO149: analyze different aspects of market failure CO150: contribute effectively in course-specific interaction.
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Approach in teaching: Interactive Lectures, Discussion, Case studies.
Learning activities for the students: Presentations, Assignments and Group discussions. |
Class activity, Assignments and Semester end examinations. |
- 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, tragedy 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
- Koutsoyiannis, Modern Microeconomics, ELBS/Macmillan, 1979
- Hal R. Varian, Intermediate Microeconomics, a Modern Approach, W.W. Norton and Company/Affiliated East-West Press (India), 8th edition, 2014
- Pindyck, Robert S., Rubinfeld, Daniel L. and Mehta, Prem L., Microeconomics, Pearson Education, 2009
Suggested Readings:
- Marshall, Alfred (1926), Principles of Economics, Macmillan
- Robinson, Joan (1933), The Economics of Imperfect Competition, Macmillan
- Chamberlin, E. H. (1933), The Theory of Monopolistic Competition, Harvard University Press
- Fellner, W.(1949), Competition among the Few, Knopf
- Hicks, Sir John R. (1963), The Theory of Wages, 2nd ed., Macmillan
e-Resources:
2. journals.indexcopernicus.com/api/file/---
3. ir.inflibnet.ac.in:8443/ir/bitstream/1944
4. worldwidescience.org/topicpages/e/economics+electronic+resource.html
Journals:
1. American Economic Journal : Microeconomics, https://www.jstor.org/journal/aejmicrecon
2. Journal of Economics, https://www.springer.com/journal/712
