`winner`s curse`. Asymmetric agency problem. Technology and input

Transcription

Study Programme
Course
Status of the Course
Year
ECTS Credits
Teacher
e-mail
consultation hours
Associate / Assistant
e-mail
Consultation hours
Place of Teaching
Mode of Teachins
Teaching Workload
Lectures + Seminars +
Graduate Studies in Management
Applied Microeconomics
Compulsorv
2014./201.s.
Semester
1..
8
Anita PeSa, Ph. D.
a pesa @ unizd.hr
current consultation hours are published at www.ekonomiia.unizd.hr
Diiana eidin-5ain
[email protected]
current consultation hours are published at www.ekonomija.unizd.hr
Department of Economics, Splitska 'J.,Zadar
Lectures and exercises
30 hours of lectures + 30 hours of exercises
Exercises
Start date
Enrolment
Requirements
01,.10.201,4.
End date
31..O1..201.s.
Supply and demand: Market. Market demand. Elasticity of demand.
Market supply. Elasticity of supply. Equilibrium price. lmperfect
information, auctions and the 'winner's curse'. Asymmetric
information. Analysis of the Atlanta Brewing Company case study.
Firms, technologies and production costs: Maximizing profits. The
agency problem. Technology and input. Short and long term.
Production function. Law of diminishing marginal returns. Production
functions with two variable inputs. lsoquants. Long term and returns
on scale. Measuring product functions. Optimal input combinations.
The nature of costs. Cost functions in the short term. Average and
marginal cost curves. Cost functions in the long term. Expansion paths
and long term total costs. Shape of long term average cost curves.
Learning curves. Analysis of the 'The case of Milk and Dairy products"
case study.
Course Contents
Consumer behavior and market demand: Consumer tastes and
preferences. lndifference curves. Marginal rate of substitution. Budget
line. The equilibrium of consumer. Ordinal and cardinal utility.
Marginal utility. The budget allocation rule. Consumer behavior and
individual demand. Revenue curves - spending and the Engel curve.
Price curves - spending and spending curves. lncome effect and
substitution effects. Normal and inferior goods. Consumer surplus.
Consumer Price lndex. Market demand. Pricing, income and cross
elasticity of market demand. Market demand and marginal revenues.
Measurement of the demand curve. Analys.is of the 'Black Gold' case
study.
Market structure, prices and products: Perfect competition. Shortterm and long-term pricing. Short-term and long-term allocation of
resources. Consumer surpluses and products and efficient production.
Monopolies. Short-term and long-term prices and products.
Monopolies with several production units. Monopoly power. Price
discrimination. Two-part tariffs and bundling. State regulation of
monopolies. Monopolistic competition. Short-term and long-term
prices and quantities. Production capacity surplus and product
diversification. Rule of thumb for setting prices. Advertising costs.
Social value of advertising. Oligopoly. Nash's equilibrium. Cournot's
model. Stackelberger's model. Bertrand's model. Agreements and
cartels. Price leadership. Breaking the demand curve. Market entry
and market competition. Game theory. Strategic moves. Oligopoly
effects. Analysis of the'Kina Carmike'case study.
Markets for inputs: Maximizing profits and using inputs. Company
demand curves with a single variable input. Company demand curves
with multiple variable inputs. Market demand input
curves.
Determiners of price flexibility input demand. Market supply input
curve. Price balance and input quantity. Rent. Monopsony. Trades
unions. lnvestment decisions and risks. Equilibrium level of interest
rates. Present value. Valuing current receipts. Net present value rule.
Risky decisions. Expected monetary value. Maximizing expected
monetary value. Maximizing expected utility. Risk
tendency.
lnsurance. Analysis of the "The case of Jetliners" case study.
Economic efficiency, externalization and public goods: Analysis of
partial equilibrium compared to an analysis of general equilibrium.
Allocation of resources and Edgeworth box diagram. Exchanges.
Production. Necessary conditions for the efficient allocation of
resources. Economic efficiency and equivalence. Perfect competition
and economic efficiency. External economy and diseconomy. Effective
pollution control. Proprietary rights and the Coase theorem. Optimal
response to global warming. Public goods. Efficient production of
public goods. Analysis of the 'California Water System' case study.
Mansfield, E., Yohe, G., Microeconomics, theory/applications, L1E,
W.W. Norton & Companv, New York, 2004.
Mansfield, E., Applied Microeconomics, W. W. Norton & Company,
lnc.,1997. Pindyck, R., Rubinfeld D., Mikroekonomija, MATE d.o.o.,
Required Reading
Additional Reading
Zaereb. 2005.
Course Evaluation
Procedures
Student surveys
Conditions for
Obtainine Sisnatures
Regular attendance, submitted homework and esseys
50
65
- 64%
-77%
78-89%
Mark Grading Scale
90
-
class
Final Grade Calculation
100%
sufficient (2)
good (3)
very good (4)
excellent (5)
preparation t5%
homework
esseys
written exam
oral exam
5%
20%
30%
30%
Topics - Lectures
No.
7.
Date
Title
Supply and demand: The market. Market demand. Elasticity
of demand. Market supply. Elasticity of supply. Equilibrium
price. lmperfect information, auctions and the'winner's
curse'. Asvmmetric information. Analysis of the Atlanta
Literature
Mansfield, E., Yohe, G.,
Microeconomics,
theory/applications, 11E,
W.W. Norton & Company
Brewing Company case study.
2.
Firms, technologies and production costs: Maximizing
profits. The agency problem. Technology and input. Short
and long term. Production function. Law of diminishing
marginal returns.
New York, 2004.
Mansfield, E., Applied
Microeconomics, W. W.
Norton & Company, lnc.,
1997. Pindyck, R., Rubinfeld
D., Mikroekonomija, MATE
d.o.o., Zagreb, 2005.
Microeconomics,
W.W. Norton & Company,
New York, 2004.
3.
Production functions with two variable inputs. lsoquants.
Long term and returns on scale. Measuring product
functions. Optimal input combinations. The nature of costs.
Cost functions in the short term. Average and marginal cost
curves.
Microeconomics,
New York, 2004.
4.
Cost functions in the long term. Expansion paths and long
term total costs. Shape of long term average cost curves.
Learning curves. Analysis of the 'The case of Milk and Dairy
products" case study.
5.
Consumer behavior and market demand: Consumer tastes
and preferences. lndifference curves. Marginal rate of
substitution. The budget line. Equilibrium of the consumer.
Ordinal and cardinal utility. Marginal utility. The budget
allocation rule.
6.
Consumer behavior and individual demand. Revenue
curves - spending and the Engel curve. Price curves spending and spending curve. lncome effect and
substitution effect. Normal and inferior goods. Consumer
surplus. Consumer Price lndex.
d.o.o., Zasreb, 2005.
Microeconomics,
New York, 2004.
d.o.o., Zagreb,2005.
Microeconomics,
New York, 2004.
d.o.o., Zasreb, 2005. '
Microeconomics,
New York, 2004.
Market demand. Pricing, income and cross flexibility of
7.
8.
9.
10.
1_1
market demand. Market demand and marginal revenues.
Measuring the demand curve. Analysis of the 'Black Gold'
case study.
Market structure, prices and products: Perfect competition.
Short-term and long-term pricing. Short-term and longterm allocation of resources. Consumer surpluses and
products and efficient productlon. Monopolies. Short-term
and long-term prices and products. Monopolies with
several production units. Monopoly power.
Price discrimination. Two-part tariffs and bundling. State
regulation of monopolies. Monopolistic competition. Shortterm and long-term prices and quantities. Production
capacity surplus and product diversification. Rule of thumb
for setting prices. Advertising costs. Social value of
advertising.
Oligopoly. Nash's equilibrium. Cournot's model.
Stackelberger's model. Bertrand's model. Agreements and
cartels. Price leadership. Breaking the demand curve.
Market entry and market competition. Game theory.
Strategic moves. Oligopoly effects. Analysis of the'Kina
Carmike' case study.
Markets for inputs: Maximizing profits and using inputs.
Company demand curves with a single variable input.
Company demand curves with multiple variable inputs.
Market demand input curves. Determiners of price
elasticity input demand.
Microeconomics,
New York, 2004.
Microeconomics,
New York, 2004.
Microeconomics,
New York, 2004.
Microeconomics,
New York, 2004.
Microecondmics,
New York, 2004.
Market supply input curve. Prlce balance and input
quantity. Rent. Monopsony. Trades unions. lnvestment
decisions and risks. Equilibrium level of interest rates.
12.
Present value. Valuing current receipts. Net present value
ru le.
Microeconomics,
New York, 2004.
d.o.o., Zasreb. 2005.
Risky decisions. Expected monetary value. Maximizing
expected monetary value. Maximizing expected utility. Risk
tendency. lnsurance. Analysis ofthe "The case ofJetliners"
case study.
13.
Microeconomics,
theory/applications, L1E,
New York, 2004.
Economic efficiency, externalization and public goods:
Analysis of partial equilibrium compared to an analysis of
general equilibrium. Allocation of resources and Edgeworth
box diagram. Exchanges. Production. Necessary conditions
for the efficient allocation of resources. Economic efficiency
and equivalence. Perfect competition and economic
14.
efficiency.
New York, 2004.
External economy and diseconomy. Effective pollution
control. Proprietary rights and the Coase theorem. Optimal
response to global warming. Public goods. Efficient
production of public goods. Analysis of the 'California
15.
Microeconomics,
Water System' case study.
Microeconomics,
New York, 2004.
Exercises
No.
Date
Title
Supply and demand: The market. Market demand.
1.
Flexibility of demand. Market supply. Flexibility of supply.
Price balancing. lncomplete information, auctions and the
'winner's curse'. Asymmetric information. Analysis of the
Atlanta Brewing Company case study.
Literatu re
Microeconomics,
New York, 2004.
2.
Firms, technologies and production costs: Maximizing
profits. The agency problem. Technology and input. Short
and long term. Production function. Law of diminishing
marginal returns.
Microeconomics,
New York, 2004.
Norton & Company, Inc.,
Production functions with two variable inputs. lsoquants.
Long term and returns on scale. Measuring product
3.
functions. Optimal input combinations. The nature of costs.
Cost functions in the short term. Average and marginal cost
cu rves.
Microeconomics,
New York, 2004.
Microeconomlcs, W. W.
4.
Cost functions in the long term. Expansion paths and long
term total costs. Shape of long term average cost curves.
Learning curves. Analysis of the ,The case of Milk and Dairy
products" case study.
Microeconomics,
New York, 2004.
5.
Consumer behavior and market demand: Consumer tastes
and preferences. Indifference curves. Marginal rates of
substitution. Budget lines. Consumer balance. Ordinal and
cardinal utility. Marginal utility. Budget allocation rule.
Consumer behavior and individual demand. Revenue
- spendlng and the Engel curve. price curves spending and spending curve. lncome effect and
substitution effect. Standard and inferior goods. Spending
surplus. Consumer price lndex.
curves
6.
d.o.o., Zagreb,2O0S.
Microeconomics,
New York, 2004.
Microeconomics,
New York, 2004.
Market demand. Pricing, income and cross flexibility of
7.
market demand. Market demand and marginal revenues.
Measuring the demand curve. Analysis of the'Black Gold'
case study.
Microeconomics,
New York, 2004.
d.o.o., Zasreb, 2005.
8.
Market structure, prices and products: Perfect competition.
Short-term and long-term pricing. Short-term and longterm allocation of resources. Consumer surpluses and
products and efficient production. Monopolies. Short-term
and long-term prices and products. Monopolies with
several production units. Monopoly power.
Price discrimination. Two-part tariffs and bundling. product
packages. State regulation of monopolies. Monopolistic
9.
competition. Short-term and long-term prices and
quantities. Production capacity surplus and product
diversification. Rule of thumb for setting prices. Advertising
costs. Social value of advertising.
10.
L1,.
Oligopoly. Nash's equilibrium. Cournot's model.
Stackelberger's model. Bertrand's model. Agreements and
cartels. Price leadership. Breaking the demand curve.
Market entry and market competition. Game theory.
Strategic moves. Oligopoly effects. Analysis of the 'Kina
Carmike' case study.
Markets for inputs: Maximizing profits and using inputs.
Company demand curves with a single variable input.
Company demand curves with multiple variable inputs.
Market demand input curves. Determiners of price
flexibility input demand.
Microeconomics,
New York, 2004.
Microeconomics,
New York, 2004.
Microeconomics,
New York, 2004.
Norton & Company, Inc.,
Microeconomics,
theory/applications, 1iE,
New York, 2004.
1997. Plndyck, R., Rubinfeld
D., Mikroekonomlja, MATE
d.o.o., Zagreb ,2005.
Microeconomics,
Market supply input curve. Price balance and input
quantity. Rent. Monopsony. Trades unions. lnvestment
12.
New York, 2004.
decisions and risks. Balance of level of interest rates.
Present value. Valuing current receipts. Net present value
ru le.
D., Mikroekonomlja, MATE
13.
74.
Microeconomics,
Risky decisions. Expected monetary value. Maximizing
expected monetary value. Maximizing expected utility. Risk
tendency. lnsurance. Analysis ofthe "The case ofJetliners"
case study.
New York, 2004.
Economic efficiency, externalization and public goods:
Analysis of partial equilibrium compared to an analysis of
general equilibrium. Allocation of resources and Edgeworth
box diagram. Exchanges. Production. Necessary conditions
for the efficient allocation of resources. Economic efficiency
and equivalence. Perfect competition and economic
efficiency.
Microeconomics,
New York, 2004.
15.
External economy and diseconomy. Effective pollution
control. Proprietary rights and the Coase theorem. Optimal
response to global warming. Public goods. Efficient
production of public goods. Analysis of the 'California
Water System' case study.
Microeconomics,
New York, 2004.
Teacher:
Anita Pe5a, Ph.D.

`winner`s curse`. Asymmetric agency problem. Technology and input

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