COURSE AIMS AND OBJECTIVES:
Fundamental concepts of economic science, building of fundamental models according to which economic entities behave, equilibrium on the markets of individual factors and products, understanding of general equilibrium, understanding of relation between individual and public interest.
COURSE DESCRIPTION AND SYLLABUS:
Company in perfect competition conditions: profit maximization in the short-term, derivation of demand function for production factors in the short-term, company's supply in the short-term, comparative-static analysis, industry supply in the short-term, profit maximization in the long-term, derivation of demand function for production factors in the long-term, company's supply in the long-term, features of indirect profit function, industry supply curve in the long-run, consequences of equilibrium disruption.
Monopoly: price determination and supply volume, comparison with perfect competition, Lerner's index of monopolistic power, the first, second and third degree of price discrimination, entry barriers
Oligopoly: one-move games (Cournot's model, Stackelberg's model), Cournot-Nash's equilibrium, Bertrand's model, Nash's equilibrium in Bertnard's model, comparison of models, mixed strategies (Edgeworth's model), oligopoly as an iteration game
ECONOMICS OF WELFARE
Economics of welfare: Pareto's efficient allocation of resources, welfare functions and Pareto's criteria, maximization of social welfare