Keele Business School

Faculty of Humanities and Social Sciences

For academic year: 2020/21 Last Updated: 09 July 2020

ECO-30047 - Advanced Topics in Microeconomics

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The purpose of this module is to enable students to understand - and apply to real world settings - some advanced microeconomic models to analyse the effects of the market behavior of consumers and firms. The module will start with an analysis of the main models of market structure. Welfare economics will subsequently be developed to enable students to assess the impact of imperfect competition on social welfare. Then,we will look at imperfectly competitive markets, game theory, and the role of information with applications based on the insurance markets showing the consequence of incomplete and asymmetric information on the nature of market equilibrium. Pricing models embedded in standard business applications will also be covered.

Continue the analysis of microeconomic models started in level 5 by focusing on market structure and market failures, i.e. on situations where private markets fail to achieve a socially optimal allocation of resources.

identify the different types of market failures and critically evaluate their impact on social welfare; the advanced nature of the course may require an extensive use of mathematical modelling. will be achieved by assessments: 1,2,

analyse the main models of market structure and explain the rationale for competition law and regulation; the advanced nature of the course may require an extensive use of mathematical modelling. will be achieved by assessments: 1,2,

critically analyse the theory of expected utility; the advanced nature of the course may require an extensive use of mathematical modelling. will be achieved by assessments: 1,2,

analyse models of information economics; the advanced nature of the course may require an extensive use of mathematical modelling. will be achieved by assessments: 1,2

evaluate measures of economic welfare; the advanced nature of the course may require an extensive use of mathematical modelling. will be achieved by assessments: 1,2,

explain and evaluate the individual attitudes towards risk and calculate risk premia. the advanced nature of the course may require an extensive use of mathematical modelling. will be achieved by assessments: 1,2,

For all the topics covered in the course, the final exam will aim to test students' broad understanding of each topic; the multiple choice test will assess a student's ability to show an in-depth, more specific, understanding of the implications of a topic or theory. Both forms of assessment, given the advanced nature of the course, may require an extensive use of mathematical modelling. will be achieved by assessments: 1,2

analyse the main models of market structure and explain the rationale for competition law and regulation; the advanced nature of the course may require an extensive use of mathematical modelling. will be achieved by assessments: 1,2,

critically analyse the theory of expected utility; the advanced nature of the course may require an extensive use of mathematical modelling. will be achieved by assessments: 1,2,

analyse models of information economics; the advanced nature of the course may require an extensive use of mathematical modelling. will be achieved by assessments: 1,2

evaluate measures of economic welfare; the advanced nature of the course may require an extensive use of mathematical modelling. will be achieved by assessments: 1,2,

explain and evaluate the individual attitudes towards risk and calculate risk premia. the advanced nature of the course may require an extensive use of mathematical modelling. will be achieved by assessments: 1,2,

For all the topics covered in the course, the final exam will aim to test students' broad understanding of each topic; the multiple choice test will assess a student's ability to show an in-depth, more specific, understanding of the implications of a topic or theory. Both forms of assessment, given the advanced nature of the course, may require an extensive use of mathematical modelling. will be achieved by assessments: 1,2

24 hours lectures

6 hours tutorials

40 hours lectures/tutorials preparation

80 hours independent study

6 hours tutorials

40 hours lectures/tutorials preparation

80 hours independent study

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2 Hour Unseen Examination

The exam includes 6 questions of which: at least one is a numerical exercise; the remaining questions are essay-type questions which need to be answered using the methods (mathematical as well as graphical) and the formulas developed in lectures.

Multiple choice test

At least 40 questions on the topics covered in the first half of the course. This provides an incentive for students to start revising all the topics from the first week.