ELE 3787 Applied Microeconomics
ELE 3787 Applied Microeconomics
Applied microeconomics gives you concepts and models to understand and analyze companies' strategic choices when they compete with other companies, and the economic consequences of these. We will deal with companies' strategic choices, such as pricing strategies, quantity competition, entry and cooperation. You will learn how established companies adapt to newcomers, the competitive effects of companies merging, and how companies can cooperate legally and illegally. We will discuss efficiency criteria and the economic justification for competition regulation. Furthermore, the course will address the interaction between innovation and competition, and shed light on issues relating to tenders and privatisation.
After completing the course, students must have knowledge of:
• what characterizes efficient resource allocation.
• central models for static imperfect competition and dynamic oligopoly theory.
• established companies' deterrence and adaptation strategies in the face of new entry.
• different types of coordinated and non-coordinated cooperation.
• various types of price discrimination and pricing strategies for companies that can engage in price discrimination.
• the economic rationale for competition policy.
• the importance of innovation and incentives to innovate.
• what is meant by tendering and privatization of public enterprises.
After completing the course, students should be able to:
• distinguish between effective and ineffective allocation of resources.
• use game-theoretic models to analyze the outcome of strategic situations.
• analyze competitive conditions in various industries using models for imperfect competition.
• discuss the trade-off the authorities face when assessing price cooperation and innovation cooperation.
• explain different forms of price discrimination.
• explain arguments for and against tendering.
• explain arguments for and against privatisation.
Students will develop the ability to independently extract information and produce and communicate simple economic analyzes and assessments.
• Efficiency criterias
• Duopoly and oligopoly theory
• Price discrimination
• Competition analysis and competition policy
• Innovations and investment incentives
• Tendering
• Privatization
The course is completed with 36 hours of lectures. In addition, digital learning resources such as videos, multiple-choice tests and other exercises will be developed.
Higher Education Entrance Qualification
Disclaimer
Deviations in teaching and exams may occur if external conditions or unforeseen events call for this.
SØK 3420 Economics I, SØK 3500 Economics II or 3550 Applied Economics, or similar courses.
| Assessments |
|---|
Exam category: School Exam Form of assessment: Written School Exam - pen and paper Exam/hand-in semester: First Semester Weight: 100 Grouping: Individual Support materials:
Duration: 3 Hour(s) Exam code: ELE 37871 Grading scale: ECTS Resit: Examination when next scheduled course |
| Activity | Duration | Comment |
|---|---|---|
Teaching | 36 Hour(s) | |
Prepare for teaching | 60 Hour(s) | |
Individual problem solving | 40 Hour(s) | |
Student's own work with learning resources | 38 Hour(s) | |
Group work / Assignments | 23 Hour(s) | |
Examination | 3 Hour(s) |
A course of 1 ECTS credit corresponds to a workload of 26-30 hours. Therefore a course of 7,5 ECTS credit corresponds to a workload of at least 200 hours.