University of Essex

EC403-7-AU-CO:
MREs Microeconomics

The details

Year: 2023/24

Department: Economics

Campus: Colchester Campus

Term: Autumn

Level: Postgraduate: Level 7

Status: Current

Start date: Thursday 05 October 2023

End date: Friday 15 December 2023

Credits: 20

Last updated: 14 September 2023

Requisites for this module

Pre-requisites: (none)

Co-requisites: (none)

Pre and / or co-requisites: (none)

Prohibited modules: (none)

Key module (requisite for): EC955, EC992

Key module for

MRESL10012 Economics,
MRESL100EB Economics,
MRESL100EK Economics,
MPHDL10048 Economics,
PHD L10048 Economics

Module description

This course covers the concepts and methods of modern microeconomics. We begin with an overview of the competitive economy and develop the two fundamental theorems of welfare economics.

We then study various types of imperfections in markets such as differential information and strategic interaction with a view to understanding the potential role for government policy. Topics covered include contract theory (with moral hazard and adverse selection problems), equilibrium concepts in game theory, and market signalling.

Module aims

The aim of this module is:

To provide the students with the knowledge of fundamentals of Microeconomic analysis.

Module learning outcomes

By the end of this module, students will be expected to have:

Acquired a grasp of the main principles and theories of modern microeconomics.

Strong insights into the power and logic of economic reasoning and be able to apply those arguments to general issues.

Module information

Syllabus

The first part of the course will cover consumer theory. After describing consumer’s demand as a function of price, we will set up the foundations of consumption theory, by formally introducing preferences and choice. Then we will describe demand as a function of income and introduce the practical estimation of demand functions. We will conclude the part on consumer theory by applying the developed general concepts to demand with labour supply and choice under uncertainty.

We will then turn to production theory, described by exploiting the formal analogy with consumption theory. We conclude the “neoclassical” part of the course by composing consumer and production theory in the general equilibrium of the economy.

Our study of modern microeconomics will then include an introduction to basic game theory, divided in the sections on normal form games, extensive form games and repeated games. Finally, the game-theoretical techniques will be applied to the problems of monopoly and oligopoly, to provide an introduction to industrial economics. We will make extensive use of calculus and formal mathematical arguments in the course.

Learning and teaching methods

The module will be delivered via:

One 2-hour lecture per week.
Two 1-hour classes per week.

Bibliography

Varian, H.R. (1992i) Microeconomic analysis. 3rd ed. New York: Norton. Available at: https://economics.ut.ac.ir/documents/3030266/14096857/microeconomic%20theory%20%20walters%20and%20layard%20%282%29.pdf.
Mas-Colell, A., Whinston, M.D. and Green, J.R. (1995c) Microeconomic theory. New York: Oxford University Press. Available at: https://app.kortext.com/Shibboleth.sso/Login?entityID=https://idp0.essex.ac.uk/shibboleth&target=https://app.kortext.com/borrow/470345.
Gibbons, R. (1992a) A primer in game theory. London: Harvester Wheatsheaf. Available at: https://www.jstor.org/stable/j.ctvcmxrzd.
Gibbons, R. (1992g) Game theory for applied economists. Princeton, N.J.: Princeton University Press. Available at: https://www.jstor.org/stable/10.2307/j.ctvcmxrzd.

The above list is indicative of the essential reading for the course.
The library makes provision for all reading list items, with digital provision where possible, and these resources are shared between students.
Further reading can be obtained from this module's reading list.

Assessment items, weightings and deadlines

Coursework / exam	Description	Coursework weighting
Coursework	Mid-Term Test	100%
Exam	Main exam: In-Person, Open Book, 120 minutes during January
Exam	Reassessment Main exam: In-Person, Open Book, 120 minutes during September (Reassessment Period)

Additional coursework information

The assessment in this module takes the form of a midterm test and a final examination during the main examination period.The assessment in this module takes the form of a midterm test and a final examination during the main examination period.
The final mark is given as follows:

If the midterm test is a failing mark (strictly less than 50), the final mark is the average of the final examination mark and the midterm test mark;
If the midterm test is a pass mark (more than 50), the final mark is the greater of

the final examination mark or
the average of the final examination mark and the midterm test mark.

Exam format definitions

Remote, open book: Your exam will take place remotely via an online learning platform. You may refer to any physical or electronic materials during the exam.
In-person, open book: Your exam will take place on campus under invigilation. You may refer to any physical materials such as paper study notes or a textbook during the exam. Electronic devices may not be used in the exam.
In-person, open book (restricted): The exam will take place on campus under invigilation. You may refer only to specific physical materials such as a named textbook during the exam. Permitted materials will be specified by your department. Electronic devices may not be used in the exam.
In-person, closed book: The exam will take place on campus under invigilation. You may not refer to any physical materials or electronic devices during the exam. There may be times when a paper dictionary, for example, may be permitted in an otherwise closed book exam. Any exceptions will be specified by your department.

Your department will provide further guidance before your exams.

Overall assessment

Whichever is the Greater: EITHER 50 per cent Coursework Mark, 50 per cent Exam Mark OR 100 per cent Exam Mark IF Coursework Mark is a pass or better

Reassessment

Whichever is the Greater: EITHER 50 per cent Coursework Mark, 50 per cent Exam Mark OR 100 per cent Exam Mark IF Coursework Mark is a pass or better

Module supervisor and teaching staff

Supervisor: Prof Simon Weidenholzer, email: sweide@essex.ac.uk.

Teaching staff: Lectures & classes: Prof Simon Weidenholzer

Contact details: For further information, send an email message to pgteco@essex.ac.uk.

Availability

Available to incoming Essex Abroad / Exchange students: Yes

Available to Outside Option: No

Available to Audit: No

External examiner

Name: Dr Domenico Moro

Institution: university of Birmingham

Academic role: Lecturer

Resources

Teaching materials: Available via Moodle

Lecture recording: Of 35 hours, 33 (94.3%) hours available to students:
0 hours not recorded due to service coverage or fault;
2 hours not recorded due to opt-out by lecturer(s), module, or event type.

Further information

Department website: Economics

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Module Directory

EC403-7-AU-CO:MREs Microeconomics