Microeconomic Theory II
                                                            ECON6031
                                                              Syllabus
                                                                            ∗
                                                              Dr. Jan Keil
                                                    University of the West Indies
                                                      Department of Economics
                                                         Semester II 2013/14
                                                     Mon 2-3pm, Tue 9-11am, GLT 1
                              Sequence Description: Microeconomic Theory I & II
                              This course introduces students to graduate level Microeconomic theory. It is
                              the second part of a sequence of two graduate classes, Microeconomic Theory I
                              andII(theformerhavingbeenalsoofferedbyDr. Keil). MicroeconomicTheory
                              I dealt with partial and general equilibrium models under standard assumptions
                              of the theoretical approaches (i.e. perfect competition and perfectly functioning
                              markets in standard theory).
                              Course Description: Microeconomic Theory II
                              MicroeconomicTheoryIIisconcernedwiththedeviationsfromtheperfectionist
                              Neoclassical model. It thus deals with market power (oligopolistic competition
                              and monopolies), external effects, public goods, imperfect and asymmetric in-
                              formation) and extensions of Microeconomics through e.g. game theory. In
                              addition to standard Neoclassical models, dynamic theories of competition and
                              institutionalist approaches will be mentioned.
                                 ∗Email: jan.keil@uwimona.edu.jm. Office address: Room E 208 McIntyre Building. Office
                              Phone: (876)970-6012, Extension 3012. Office hours: Thu 2-4pm, Fri 1-3pm.
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                              Dr. Jan Keil             Microeconomic Theory II                    Page 2
                              Syllabus                        ECON6031               Semester II 2013/14
                              Learning Objectives
                              The course aims at developing the students’ competence to:
                                 • Comprehend advanced standard Microeconomic theory and recent devel-
                                   opments and discussions in the field
                                 • Distinguish between different models and identify the potentials and the
                                   limits of different approaches
                                 • Analyze, evaluate and solve real world examples and problems with Mi-
                                   croeconomic tools and techniques
                                 • Evaluate, expose and reflect on practical and theoretical Microeconomic
                                   matters in a clear, cogent, creative and critical way
                              Required Work & Evaluation
                              In order to successfully complete this course, students have to attend the ses-
                              sions, read the required material, participate in class, finish and present solutions
                              to problem sets and pass the final examination.
                              ProblemSetPresentations[20%] Problemsetsareassignedonabi-weekly
                              basis. Their purpose is to induce students to practice the material presented in
                              the lecture. Solutions to the problem sets will be presented by students in class
                              and have to be made available online.
                              Class Participation [10%] Students have the opportunity to participate in
                              class and are graded according to the quality of contributions.
                              Final Exam [70%] The final in-class exam will be written after classes end.
                              It will cover all of the material covered in the course.
                              Course Material
                              Core readings
                              The main text for the course is
                                 • Varian, Hal R. (1992): Microeconomic Analysis, 3rd Edition; W.W. Nor-
                                   ton & Company Inc.; New York, NY.
                              Students should obtain access to the book.
                              Additional readings
                              There will be several individual additional readings that will be provided as the
                              course proceeds.
                              Dr. Jan Keil             Microeconomic Theory II                    Page 3
                              Syllabus                        ECON6031               Semester II 2013/14
                              List of Topics & Course Structure
                              Students must complete the required reading before class. Failure to do so will
                              haveanegativeimpactonyourabilitytofollowthematerialandsuccessfullyfin-
                              ish the assignments. Make sure you schedule enough time to complete assigned
                              material, take notes, prepare questions and revise each session.
                                                                                               Section 1
                              Basics and selected topics
                                 • Uncertainty, time and asset markets
                                 • Economic welfare
                                 • Externalities
                                     – Taxation, property rights
                                 • Public goods
                                     – Market failure & government intervention
                                                                                               Section 2
                              Deviations from perfect competition
                                 • Monopolies
                                     – Pricing & price discrimination
                                     – Welfare & regulation
                                 • Oligopolies
                                     – Oligopolistic competition models
                                     – Barriers to mobility, concentration, profitability
                                 • Dynamic theories of competition
                                 • Empirical evidence
                                                                                               Section 3
                              Deviations from complete markets
                                 • Incomplete contracts, imperfect information
                                 • Principal-agent problems, moral hazard
                                 • Transaction costs, institutions, neo-institutional economics