Intermediate Microeconomics

The aim of this course is to show how classic price theory and game theory can be used to explain how different markets work. In price theory the focus is on the mechanisms controlling consumption and production decisions, as well as the assumptions being made regarding competition, information, preferences and externalities. Topics discussed include decisions under uncertainty, moral hazard and adverse selection, monopoly pricing, and public goods. Game theory focuses on strategic interaction and is used to analyse e.g. oligopolistic competition and contracts. Using the tools of analysis from price and game theory, this course explains how different economic structures arise and work, and how they can be shaped in a socially and economically efficient fashion. Moreover, basic concepts relating to general equilibrium theory and welfare theory are introduced.