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.

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

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

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: 

1. Henderson, J.M. and R.E. Quandt, Microeconomic Theory: A Mathematical Approach, McGraw Hill, 1980.

2. Chiang, A. C., Kevin Wainwright, Fundamental Methods of Mathematical Economics McGraw Hill, 4th Edition, 2005.

References: 

1. Mehta, B.C. and G.M.K. Madnani, Mathematics for Economists, Sultan Chand & Sons. 2. Mehta, B.C. , Mathematical Economics: Microeconomic Models, Sultan Chand & Sons

Academic Session: 
2022-23
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