ECH-21806 Microeconomics


Studiepunten 6.00

Literature study
Course coordinator(s)dr. PHM van Mouche
Lecturer(s)dr. T Herzfeld
dr. PHM van Mouche
prof. dr. R Finger
Examiner(s)dr. PHM van Mouche

Language of instruction:



The course deals with the standard neoclassical microeconomic theory (consumer theory, producer theory, general equilibrium and welfare) on an intermediate level.

Learning outcomes:

After successful completion of this course students are expected to be able to describe the following notions, and also (if that applies), to illustrate them graphically (1) and to compute them for simple concrete situations (2):
- Consumer theory: preference relation (2), utility (2), (cobb-douglas-, solow-, leontief-, maximum- and special quasi-linear) utility function, utility maximisation (1,2), indifference set (1,2), budget set (1,2), marginal rate of substitution (1,2), marshallian demand function (2), types of goods (2), substitution effect (1,2), income effect (1,2), gamble (2), Van Neumann-Morgenstein utility (2), types of risk (2);
- Producer theory: production function, long term, short term, cost (2), cost minimization (1,2), isocost set (1,2), marginal technical rate of substitution (1,2), conditional production factor demand function (2), cost function (2), returns to scale (2), profit (2), profit function (2), profit maximization (input and output perspective), 2), production factor demand function (2), supply function (2), elasticity (1,2), relation between elasticity and revenue;
- Equilibrium theory: partial equilibrium (2), tax and subsidy (2), pure exchange economy, edgeworth box (1,2), allocation (1,2), pareto efficient allocation (1,2), contract curve (1,2), excess demand (2), aggregate excess demand (2), walrasian equilibrium (2), walras' law;
-Game theory: game in strategic form, strategy, multi-strategy, payoff function, bi-matrix game, strictly dominant strategy (2), nash equilibrium (2), full cooperative multi-strategy (2), pareto efficient multi-strategy (2), prisoner's dilemma (2);
- Oligopoly theory: types of oligopolies, cournot equilibrium (1,2), von-stackelberg equilibrium (2), collusion (1,2);
- Welfare theory: welfare measure, consumer's surplus (1,2), producer's surplus (1,2), compensating variation (1,2), equivalent variation (1,2), first and second welfare theorem, types of externalities (2), coase theorem.


Lectures, practicals and homework.


Written examinations/tests.


- H. Varian, Intermediate Microeconomics, Norton & Company;
- T. Bergstrom and H. Varian, Workout in Intermediate Microeconomics, Norton & Company.

Verplicht voor: BINInternational Development StudiesBScB: Economics of Development5AF
BEBEconomics and GovernanceBSc2AF
Keuze voor: MIDInternational Development StudiesMScB: Economics of Development2AF
Verplicht voor: WUECPBSc Minor Economics and Policy5AF