Mathematical Economics-II

Paper Code: 
ECO 602(A)
Credits: 
3
Contact Hours: 
45.00
Max. Marks: 
100.00
Objective: 
  1. To understand the Price and Output Determination under monopoly and duopoly mathematically.

 

  1. To explain the concept of game theory and its application.

 

  1. To comprehend the techniques of input output analysis and linear programming.

 

 

 

Course Outcomes (COs):

Course

 Outcome (at course level)

Learning and teaching strategies

Assessment Strategies 

Paper Code

Paper Title

ECO 602(A)

Mathematical Economics-II

CO 46: Students will apply the techniques of mathematical analysis in the behaviour of firms under monopoly and duopoly.

CO 47: Students will examine the techniques of Game theory, Linear Programming and Input Output analysis.

Approach in teaching: Interactive Lectures and Discussions.

 

Learning activities for the students:

Practice Modules and

Assignments.

Class activity, Assignments and Semester end examinations.

 

9.00
Unit I: 
Price and Output Determination under Monopoly
  • Profit Maximization, sales revenue maximization, price discrimination, Multi-Plant Monopolist, effect of various taxes on output and price under monopoly;

 

9.00
Unit II: 
Price and Output Determination under Duopoly
  • Quasi competitive solution, Collusion solution, Cournot solution and market share solution.

 

9.00
Unit III: 
Game Theory
  • Basic concept
  • Two-person, Zero-sum Games, Saddle point solution;
  • dominant strategies, Pure and Mixed strategies;

 

9.00
Unit IV: 
Input-Output Analysis
  • Concept of ‘Open & Closed’, ‘Static & Dynamic’ Model;
  • Determination of gross output in an open model.
  • Hawkins-Simon conditions of viability;

 

9.00
Unit V: 
Linear Programming
  • Formulation of Problem and its Graphical solution;
  • Simplex Method (for maximization only);
  • Concept of Primal and Dual.

 

Essential Readings: 
  • Henderson, J.M. and R.E. Quandt (1980), Microeconomic Theory: A Mathematical Approach, McGraw Hill, New Delhi.
  • Chiang, A. C., Kevin Wainwright, Fundamental Methods of Mathematical Economics  (Fourth Edition), McGraw Hill, 2005

 

References: 
  • Mehta, B.C. and G.M.K. Madnani, Mathematics for Economists, Sultan Chand & Sons, New Delhi.
  • Mehta, B.C. , Mathematical Economics: Microeconomic Models, Sultan Chand & Sons, New Delhi.

 

Academic Session: 
2021-22
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