Course outline: Microeconomics (MEM) 2017/18
- Evans, Anthony J., (2014) “Markets for Managers: A Managerial Economics Primer“, Wiley Finance
- Schotter, A., 2008, “Microeconomics: A Modern Approach” (South Western, International edition)
- Mankiw, N.G., and Taylor, M. P., “Economics“, Cengage Learning (2011, 2nd ed.)
Course handouts: download here (zip)
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
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
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
Video: “Game Theory“, February 2015
5b. Oligopolistic competition
Sessions marked with an asterix (*) have a lecture handout available in advance, which can be downloaded.