Introductory description

The module aims to provide a comprehensive basic introduction to conventional microeconomics.

Module web page

Module aims

Outline syllabus

This is an indicative module outline only to give an indication of the sort of topics that may be covered. Actual sessions held may differ.

The course will contain coverage of some or all of the following topics:
Foundations of individual economic behaviour - indifference curve analysis and the individual's demand for goods and supply of labour.
Extensions to decision under risk and uncertainty - conventional Subjective Expected Utility Theory: some applications and some concerns about the standard assumptions.
Extensions to intertemporal choice.
Foundations of the supply side - costs of production and the objectives of firms.
Demand and supply under perfect competition, monopoly, monopolistic competition and oligopoly.
Strategic interactions between firms. Introduction to game theory and some economic
applications; some concerns about the standard assumptions.
Market failure and the role of government: externalities, public goods, the public provision of goods and services and other interventions in markets.

Learning outcomes

By the end of the module, students should be able to:

• Demonstrate a comprehensive understanding of fundamental economic principles and methods of economic analysis.
• Show an awareness of the questions that have been raised about the behavioural validity of some of the assumptions underpinning conventional economic analysis.
• Use game theory to predict the responses of firms to changes in their competitive environment.
• Explain market failure and the role of state intervention in the reduction of negative externalities caused by firm behaviour.

Indicative reading list

Students will be encouraged to look at more than one introductory text. Other texts which offer more critical behavioural perspectives are:
Wilkinson, N.: An Introduction to Behavioral Economics. Palgrave Macmillan (2008). This is a solid but basic introduction to the fundamentals of behavioural economics.
Frank, R. H. (2009). Microeconomics and behavior. McGraw-Hill. This covers basic microeconomic principles with a focus on individual behaviour.
The following provide interesting supplementary material for those considering taking the Behavioural Economics module in the second term:
Ariely, D. (2008), Predictably Irrational: The Hidden Forces That Shape Our Decisions,
HarperCollins, pp. 304.
Thaler, R. and Sunstein, C.: Nudge. Penguin (2009).

Subject specific skills

• Use game theory to predict the responses of firms to changes in their competitive
  environment.
• Explain market failure and the role of state intervention in the reduction of negative externalities caused by firm behaviour.

Transferable skills

Demonstrate written communication skills
Demonstrate developed problem solving skills