MICROECONOMICIS is a course of the second year of the Grado en Administración y Dirección de Empresas. This course develops topics on Microeconomic Theory to analyze the markets of goods and services. It overviews some market failures and analyzes the consequences of those situations on the optimal decision making and interaction of the firms, as well as on the market allocation and derived welfare.

This course builds upon the knowledge acquired by the student in the first year, more precisely, upon the consumer theory, the theory of the firm and the analysis of competitive markets.

After successfully following this course, the student will be able to identify the relevant assumptions on market theory that are suitable to describe the functioning of a given real market. They will also master the analytical tools to: (1) represent and quantify the market allocation and derived welfare, (2) consider the strategic interaction of agents, and (3) analyze the effect of some policies aimed at achieving efficient allocations when there are market failures.

The contents of this course are related to those of other courses as in the case of economic policy (fiscal policies and market regulation policies), strategic management and marketing (optimal pricing), as well as with legal issues of the firm and competition policy.

1.- Provide rationality to the analysis and describe the markets’ behavior, from individual behavior of firms and households.



2.- Learn the ability to evaluate the consequences of different scenarios and select the best, given the objectives, in markets where agents interact.



3.- Understand the role of economic models to be able to explain the microeconomic relationships in markets where agents are rational. Understand the microeconomic strategies and their implications for management.



4.- Learn the ability to identify key factors of a microeconomic problem.



5.- Understand the effects of microeconomic policies using different graphical and mathematical tools.



6.- Learn the ability to pose and solve analytically problems of noncompetitive markets. Understand the consequences of market power and the different competitive strategies of firms with market power.



7.- Learn the ability to explain the answers to the problems of asymmetric information developed in the markets. Understand the implications of asymmetric information on the interaction between economic agents.



8.- Learn the ability to understand market failures and some government regulations to address those failures. Understand the consequences of market failures.

Part One: Market Structure and Competitive Strategy



Topic 1.- Market Power: Monopoly and Monopsony.

Topic 2.- Pricing with Market Power.

Topic 3.- Monopolistic Competition and Oligopoly.

Topic 4.- Game Theory and Competitive Strategy



Part Two: Information, Market Failure, and the Role of Government



Topic 5.- Markets with Asymmetric Information.

Topic 6.- Externalities and Public Goods.

In this course different teaching methodologies are used so that students develop skills and achieve the learning outcomes set.



Tutorial classes of the conceptual contents of the course will be taught. Problems and exercises to develop individually or by group will be provided. These problems and exercises will deepen the theoretical knowledge of the subject of Microeconomics and connect with other related areas.



The timing of the distribution of the different classes throughout the semester (time schedule) will be presented the first day of class and will take into account, in any case, the time schedules determined by the Center.



The teaching materials that the instructor finds appropriate for this course will be publicly made available through the teaching platform used in the UPV/EHU, eGELA.

• Continuous Assessment System
• Final Assessment System
• Tools and qualification percentages:
  • Multiple-Choice Test (%): 100

Multiple choice test.

Students have to solve problems and exercises in class.





Clarifications



The grading rule is based on the assessment of participation in various training activities developed during the course and final multiple choice test.



The continuous assessment will evaluate the student's participation in training activities scheduled for each seminar and practical class and the extent in which they are acquiring the skills provided for this subject. The maximum weight of the continuous assessment of the final grade will be 25%.



It is also intended to carry out a final written test in order to assess the acquisition of the skills provided for the subject.



Students pass the course if they get a score of 5 out of 10. The minimum score a student must obtain in the final test will be 4 out of 10.

An multiple choice exam representing 100% of the course grade.

[1] R.S. Pindyck and D.L. Rubinfeld, Microeconomics, 9th edition, Pearson Prentice Hall Editor.
[2] Other material that will be posted on eGELA, the e-learning platform at the UPV/EHU.

Basic bibliography

R.S. Pindyck and D.L. Rubinfeld, Microeconomics, 9th edition, Pearson Prentice Hall Editor.

Web addresses

https://www.un.org/sustainabledevelopment/es/objetivos-de-desarrollo-sostenible/