Ateneo - UPO

The course is composed of a first part in which it is intended to resume the basic elements suitable for the understanding of the functioning of the economic system. Particular attention will be dedicated to the study of the behavior of economic actors (consumers and firms), the analysis of the role of the market in the process of allocation of resources, and to the different types of market forms. This first part will include the mathematical formulation of the concepts treated as well as a part consisting of several guided exercises. The second part will include insights and complements of game theory, externalities, public goods and some hints of
behavioral economics.

"Microeconomics" by R. Frank and E. Cartwright; Mc Graw Hill;
VII ed. and following

The course aims to provide an intermediate preparation for the understanding of the functioning of the economic system, also through a more complete mathematical formalization. Students should acquire adequate knowledge and an effective ability to understand the main mechanisms of economic choice of agents (consumers, firms, state).

Basic knowledge of microeconomics as well as basic mathematical and quantitative methods for economics are assumed.

All lessons will be held in presence, except for specific cases communicated by the teacher.

Reception by appointment to be agreed by email.

Students with physical disabilities, Learning Disabilities or Special Education Needs can request specific services and tools via the Staff Sviluppo e Coordinamento Carriere e Servizi alle Studentesse e agli Studenti, consulting the University webpage: https://www.uniupo.it/en/services/servicesstudents-physical-or-learning-disabilities Students with disabilities, learning disabilities or special education needs, once they have contacted the University Staff, can refer to the tutor in charge of the course to define the examination modalities, concerning academic aspects.

The "Microeconomic Analysis" exam consists of the "Behavioral Economics" module and the "Rational Choice Theory" module. Therefore, the assessment (exam) for both modules must take place at the same time (within the same exam session). "Rational Choice Theory" module involves a written exam

1. FIRST PART
 Introduction to the course, cost/benefit analysis, opportunity costs, sunk costs.
 Theory of consumption, budget constraint, consumer preferences, utility, optimal choice, demand, consumer surplus, elasticity, individual and market demand, supply, market demand and equilibrium, state interventions.
 Theory of production, technology, profit maximization.
 Cost theory, cost minimization, cost curves, firm's supply, industry's supply.
 Perfect competition.
 Monopoly and monopolistic competition.
2. SECOND PART
 Game theory and Oligopoly theory.
 Externalities and public goods.
 General economic equilibrium.
 Behavioral Economics.
 Absence of the market; asymmetric information (adverse selection and moral hazard).
3. PRACTICAL EXERCISES
 During the lessons various guided exercises will be carried out aimed at understanding the theoretical concepts, as well as preparatory to the written test

 Knowledge and understanding: students must acquire adequate knowledge and an effective understanding of the main mechanisms of economic choice of agents (consumers, firms, government).
 Ability to apply knowledge and understanding: students must be able to apply the knowledge acquired to understand and solve problems related to:
- consumer spending and firm production decisions;
- use supply and demand to determine changes in market equilibrium and make decisions using marginalist analysis as well as the concept of opportunity cost;
- price formation in the different types of market;
- consequences on the well-being of the community of different types of market;
- understand the implications for the behavior of firms with regard to
different market forms.
 Autonomy of judgment: students must be able to use the acquired knowledge on a conceptual level to evaluate simple applied cases.
 Communication skills: students must acquire the technical language typical of microeconomics to communicate the concepts learned clearly and without ambiguity.
 Learning skills: students must develop adequate learning skills that allow them to deepen the knowledge they have learned independently.