Skip to content
Main menu hidden.

Microeconomic Analysis II D26, 7.5 Credits

Swedish name: Mikroekonomisk analys II D26

This syllabus is valid: 2015-09-07 valid to 2022-01-02 (newer version of the syllabus exists)

Course code: 2NE071

Credit points: 7.5

Education level: Second cycle

Main Field of Study and progress level: Economics: Second cycle, has second-cycle course/s as entry requirements

Grading scale: VG Pass with distinction, G Pass, U Fail

Responsible department: Department of Economics

Established by: Rector of Umeå School of Business and Economics, 2015-06-04

Revised by: Rector of Umeå School of Business and Economics, 2015-06-04


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.

Expected learning outcomes

After completion of this course, students should be able to:
- Explain how supply functions, prices, costs, quantities and the number of firms are determined under full competition.
- Theoretically analyze and describe how the presence of monopolies or oligopolies affect firms’ decision and the equilibrium on the market but also explain how this can be studied empirically.
- Differentiate between different kinds of price discrimination and solve price discrimination problems.
- Define central concepts of game theory and theories regarding oligopolies.
- Derive the solution to various kinds of games.
- Show how asymmetric information will affect the outcome on different markets.
- Derive and mathematically prove theoretical results.
- Describe the empirical methods and results presented during the course.  

Required Knowledge

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.

Form of instruction

The education is offered in forms of lectures.

Examination modes

The examination consist of a written examination in the end the course.

A second exam opportunity is always offered within a short time span after the regular exam date for those students not achieving a Pass. The subsequent exam opportunity is either the re-take opportunity the week before the fall semester or the next regular exam date. The following grading system will be used: Pass with Distinction (Väl Godkänd) Pass (Godkänd) Fail (Underkänd).

There is normally not possible to make additional examinations to reach a higher grade. Exceptions can be made for a student with the grade Fail on any of the examinations if the examiner (not the lecturer) finds this appropriate. The task must be a minor undertaking, closely related to the learning outcome not reached, and performed in close proximity to the original examination.

When a student has failed an examination on two occasions, he or she has a right to have another grading teacher. A written request for an alternative examiner should be handed to the Dean of the Business School no later than two weeks before the next examination opportunity.

Credit transfer
Academic credit transfers are according to the University credit transfer regulations.


Valid from: 2015 week 37

Varian Hal R.
Microeconomic analysis
3. ed. : New York : Norton : cop. 1992 : 506, (42) s. :
ISBN: 0-393-95735-7 (Student ed.)
Search Album, the University Library catalogue