The goal of the course is to introduce business students to the basic decision making of consumers and firms, and the resulting market outcomes in terms of quantities traded and prices under different market structures (competition; oligopoly; monopoly). After completing the course, students will be able
(1) to analyze the effects of changes in firms’ costs structure or changes in consumer preferences on market outcomes.
(2) to analyze the effects of different market structures on prices, quantities and social welfare.
(3) to interpret market outcomes in terms of the economic interaction of buyers and sellers under different market conditions.
(4) to analyze the effects of regulation/policy on market outcomes.
On the basis of recent academic research in economics and management science, students will become acquainted with the methods of theoretical and empirical analysis of economic interactions between market participants. After the course, students will be able to address both theoretical and empirical market analyses from a scientific perspective.
Please note, that all IBA courses are only open to IBA students. It is not possible to use this course as an elective for other programs.
In six lectures, the course introduces the foundations of microeconomic analysis. The course covers the following topics: basic principles of economic interaction, mechanics of supply and demand, the concepts of elasticity and rational decision making of economic actors (firms and consumers), the role of competition and markets with imperfect competition.
Type of instructions
2-hour lecture and 2-hour tutorial in the typical week
Type of exams
Written exam (100%): multiple choice, corrected for randomization