Actualités et agenda
Nos formations
Présentation
1. Prior knowledge of consumer theory and producer theory. The course will start with revisions/continuation of the producer theory under perfect competition.
2. Mathematics/calculus:
- Basic derivatives of a function of one variable; partial derivatives.
- Calculating areas of simple shapes such as triangles, rectangles.
This course allows students to continue to learn and use concepts and tools in Microeconomics. It focuses on firm behavior and industrial organization.
It mixes theory and applications (tutorials). Most of the concepts will be investigated using various formats: verbal descriptions, graphic representations, mathematics, applications.
After reviewing/going further in the understanding of firm behavior under perfect competition, we will focus on imperfect competition. Using the tools of profit maximization developed in the theory of the firm, we investigate the monopoly as well as Monopolistic Competition. We then study major models of oligopolies, including models by Cournot, Stackelberg, Bertrand, as well as collusive behavior.
The basics of Game Theory are finally presented to find dominant strategies and Nash equilibria to explain strategic interactions among firms and predict market outcomes.
Chapter 1: Firm Behavior Under Perfect Competition (˜ 2 classes)
- Review of the supply decision of a firm that sells in a market with perfect competition.
- The short versus the long run.
- Firm and market supply.
Chapter 2: Firm Behavior in Monopolistic Markets (˜ 3 classes)
- Conditions for the existence of a monopoly.
- The Optimal Production and Pricing Decision of a Monopoly Without Price Discrimination. Monopoly equilibrium & Monopoly deadweight-loss.
- Price discrimination
- Public policy towards monopolies. Natural monopolies.
- Monopolistic Competition (the short-run and the long-run).
Chapter 3: Firm Behavior in Oligopolistic Markets (˜ 3 classes)
- Cournot Duopoly Model.
- Stackelberg Model.
- Cartel and collusion.
- The Bertrand Duopoly Model.
- Oligopoly with three or more members.
Chapter 4: Game Theory (˜ 1 class)
- Prisoner’s Dilemma
- Oligopolies as a Prisoner’s Dilemma
- Nash equilibrium
Modalités
Flipped classroom / Tutorials
Before each class, students are required to read a chapter’s section and to start practicing by solving a problem.
During the class, we discuss the content of the section, review the application done at home, and practice further.