Theory and applications of microeconomics in enterprises (in English)
- Credits: 10
- Ending: Examination
- Range: 16sP
- Semester: winter
- Year: 1
- Faculty of Business Management
Teachers
Included in study programs
Teaching results
Knowledge:
• The graduate of this course will gain knowledge of the use of the model approach and mathematical methods in microeconomic theory and the possibilities of their application as an effective tool in solving problems of microeconomic analysis.
• Knowledge of practical techniques, tools, processes by which analytical economic thinking can be developed more deeply based on a quantitative theoretical approach and the solution of practical microeconomic problems.
Competence:
by completing the course, the student will acquire the following competencies:
• The student will be able to critically evaluate and analyze problems of business and economic practice using appropriate microeconomic analysis techniques.
• The student will be able to apply a wide range of techniques and interpret research results appropriately for practice decision making.
• Based on the results of the analysis, the student will be competent to propose available solutions for their implementation in different areas of economic practice.
Skill:
• The graduate will be able to implement, apply methods of microeconomic analysis, construct multivariate economic models and draw appropriate conclusions from the applied procedures and techniques.
• The graduate has knowledge of the behaviour of market structures, in the market of perfect and imperfect competition and also in the conditions of state regulation.
• The graduate is able to navigate in the tools of microeconomic analysis, and their application in solving a specific economic problem.
Indicative content
Preferences and consumer choice, classical demand theory, consumer behaviour under uncertainty.
2. Game theory - static games with complete information, dynamic games with complete information, static games with incomplete information, dynamic games with incomplete information.
3. Market equilibrium, market failure, externalities and public goods.
4. Market power - monopoly, oligopoly models, monopolistic competition.
5. Uncertainty and risk. Lotteries, expected utility. Global and relative risk aversion.
6. Welfare theory, Pareto efficiency, welfare maximization.
7. General equilibrium theory.
Support literature
1. BROWING, E. K., ZUPAN, M.A.Microeconomics theory. A. W. Longman, New York 1999.
2. FRANK, R. H. Microeconomics and Behavior, New York, McGraw-Hill 1999.
3. JEHLE, G.A., RENY, P.J., 2011. Advanced Microeconomic Theory, 3rd Edition, New Jersey, Prentice Hall, ISBN 9780273731917.
4. KREPS. D.M. Microeconomics for managers. Princeton University Press, 2019. ISBN 9780691182698.
5. MAS-COLELL, A., WHINSTON, M.D., GREEN, J.R., 1995. Microeconomic Theory, New York, Oxford University Press, ISBN 9780195073409.
6. NICHOLSON.W., SNYDER, CH., 2011. Microeconomic Theory, 11th Edition, Hampshire, Cengage Learning, . ISBN 9781111222901.
7. VARIAN, H.R., 1992. Microeconomic Analysis, 3rd Edition, New York, W. W. Norton a Company, ISBN 0-393-95735-7.
Web of Science:
1. The features of banking competition modelling - https://www-1webofscience-1com-110bsvka60ba0.hanproxy.cvtisr.sk/wos/woscc/full-record/WOS:000420890400025
2. Risk, uncertainty, and leverage - https://www-1webofscience-1com-110bsvka60ba0.hanproxy.cvtisr.sk/wos/woscc/full-record/WOS:000556551300021
3. How does Aggregate Tax Policy Uncertainty Affect Default Risk? - https://www-1webofscience-1com-110bsvka60ba0.hanproxy.cvtisr.sk/wos/woscc/full-record/WOS:000602153000001
4. Competitive equilibrium with incomplete financial markets - https://www-1webofscience-1com-110bsvka60ba0.hanproxy.cvtisr.sk/wos/woscc/full-record/WOS:000240565200003
5. Equilibrium in quality markets, beyond the transferable case- https://www-1webofscience-1com-110bsvka60ba0.hanproxy.cvtisr.sk/wos/woscc/full-record/WOS:000463816200004
6. What you get is not what you paid for: New evidence from a lab experiment on negative externalities and information asymmetries- https://www-1webofscience-1com-110bsvka60ba0.hanproxy.cvtisr.sk/wos/woscc/full-record/WOS:000668593800002
7. Internal market failure: A framework for diagnosing firm inefficiency- https://www-1webofscience-1com-110bsvka60ba0.hanproxy.cvtisr.sk/wos/woscc/full-record/WOS:000182267500008
8. Agent-Principal Problem in Financial Distribution- https://www-1webofscience-1com-110bsvka60ba0.hanproxy.cvtisr.sk/wos/woscc/full-record/WOS:000443842200005
9. Service Delivery Under Pressure: The Effect of Donor-Imposed Financial Restrictions- https://www-1webofscience-1com-110bsvka60ba0.hanproxy.cvtisr.sk/wos/woscc/full-record/WOS:000664320500001
10. Authority, risk, and performance incentives: Evidence from division manager positions inside firms- https://www-1webofscience-1com-110bsvka60ba0.hanproxy.cvtisr.sk/wos/woscc/full-record/WOS:000246107800007
Syllabus
1. Preferences and consumer choice, classical demand theory, consumer behaviour under uncertainty. Relational preferences, choice rules, consumer set, budget set, different approaches to consumer decision making. 2. Game theory - static games with complete information, dynamic games with complete information, static games with incomplete information, dynamic games with incomplete information. Payment matrix. Nash equilibrium. 3. Market equilibrium, market failure, externalities and public goods countable general economic equilibrium, Cobb-Douglas functions of functions with constant elasticity of substitution, linear expenditure system, functions of constant elasticity ratios. 4. Market power - monopoly, oligopoly models, monopolistic competition.Price formation by mark-up. Inefficiency of monopoly. Optimal patent term. Price discrimination. Calculation of optimal price discrimination. 5. Uncertainty. Conditional consumption. Utility and probability functions. Expected utility. Risk aversion. Diversification. Distribution of risk. Expected utility as a reasonable assumption. 6. Welfare economics theorems, Edgeworth diagram Pareto efficiency, welfare maximization, market failures and validity of welfare theorems, externalities and allocative efficiency. 7. General equilibrium theory, general equilibrium conditions. Walras law, marginal utility theory, stability of equilibrium, solvability of Walras system of equations production equation solvability of equations of change.
Requirements to complete the course
10 % continuous performance of assigned tasks, 30 % continuous written work (scientific essay), 60 % oral examination
Student workload
participation in consultations 16 h, preparation for consultations 32 h, processing of continuous assignments 16 h, processing of scientific state 90 h, preparation for the exam 106 h)
Language whose command is required to complete the course
English
Date of approval: 09.02.2023
Date of the latest change: 14.05.2022