Microeconomics – MEM

Course outline: Microeconomics (MEM) 2017/18

Course textbook:

Course handouts: download here (zip) [Coming soon]

Problem set: download it here.

1. Consumer behaviour and negotiation

1a. Incentives matter*

1b. Understanding cost*

2. Supply decisions

2a. Cost curves*

Evans, A.J., “La Marmotte”, January 2012

Instructions: Complete Exhibit 1 and provide suggestions for the two key decisions

2b. Economies of scale

Rivkin, J.W., “Dogfight over Europe: Ryanair (A)” Harvard Business School case no. 9-700-115, November 21st 2007 (£)

Discussion question: What are some sources of economies of scale? How do they apply to British Airways in 1986?

Video: “The Planning Horizon“, June 2016

3. Markets and prices

3a. Market equilibrium (36)*

Video: “Comparative statics and the UK housing market”, April 2014

3b. Price discrimination*

Evans, A.J., “An Economist’s Passage to India”, February 2012

Complete the assignment questions.

4. Asymmetric information and market design

4a. Adverse selection

Akerlof, George A. (1970). “The Market for ‘Lemons’: Quality Uncertainty and the Market Mechanism”. Quarterly Journal of Economics 84(3):488–500

4b. Auctions

Hild, M., Dwidevy, A., and Raj, A., (2004) “The Biggest Auction Ever: 3G Licensing in Western Europe”, Darden Business Publishing (£)

Discussion question: What are the alternatives to auctions?

5. Strategy and microeconomics

5a. Introduction to Game Theory*

Video: “Game Theory“, February 2015

5b. Oligopolistic competition


Sessions marked with an asterix (*) have a lecture handout available in advance, which can be downloaded.

Cases marked with a pound sign (£) are either available via Blackboard or through the library.