The course starts by a short repetition of how supply function, price, quantity, and number of firms are determined under full competition. After the introduction will the focus be on the decision by a monopoly firm on price and quantity, i.e. how a monopoly will maximize the profit by price discrimination. The students are also introduced to empirical examples of price discrimination.
The second part of the course focuses on game theory and oligopolies. Famous games as the Prisoners Dilemma are the starting point for a discussion on concepts like Nash equilibrium and dominant strategies. Later parts will analyze mixed equilibriums, repeated games and how to exclude certain Nash equilibria. The part on oligopolies are based on the game theory described earlier and will analyze price and quantity competition in static settings. This part of the course ends in a discussion on repeated games on oligopolies.
The last part of the course will analyze how asymmetric information will affect the outcome on different markets including the principal-agent problem, negative selection and signaling.
University: Courses in Economics at undergraduate level equal to 90ECTS (whereof 30ECTS C-level courses) including a Bachelor thesis of 15ECTS or the equal writing experience. In addition Mathematical Economics I D7 and Microeconomi Analysis I D25 or the equivalent is required. Students are also required to have English B from Swedish gymnasium or the equivalent.
Applicants in some programs at Umeå University have guaranteed admission to this course. The number of places for a single course may therefore be limited.
Application deadline was
15 April 2021.
Please note: This second application round is intended only for EU/EEA/Swiss citizens.