When does it make sense for a firm to introduce a variable-wage payment scheme? Does the set of social norms and values someone is confronted with increase or decrease one's reactions to changes in prices? How do firms operating in an oligopolistic market react to each other’s decisions? How does the existence of asymmetric information influence the efficiency of markets? Why do most people tend to procrastinate? Such questions, where economic decision-making is analysed in its institutional and psychological context, will be discussed in this course,
which provides a profound treatment of modern microeconomics and an introduction to game theory. Students are supposed to have knowledge of microeconomics at the level of the course Microeconomics, Institutions and Welfare. The course Intermediate Microeconomics, Games and Behaviour investigates consumer and producer behaviour more in-depth. Next to this it includes the analysis of situations where uncertainty, strategically interacting actors (game theory) and asymmetric information play a role. Attention will also be paid to the way microeconomics, as a branch of rational choice theory, can be used as a framework to integrate elements of other disciplines, notably sociology and psychology into the economic approach to enable the interdisciplinary analyses of social (including economic) problems.
Learning objectives
At the end of the course the student is able to:
- Reason in terms of scarcity, relative prices, income and substitution effects, demand and supply, markets and market imperfections, including in situations where uncertainty, interacting actors and asymmetric information play a role;
- Apply the microeconomic approach to problems that traditionally are studied by other disciplines;
- Apply basic game theoretic concepts to achieve a better understanding of economic situations in which economic agents strategically interact ;
- Apply psychological concepts to mainstream microeconomics to better understand the behaviour of economic agents;
- Understand how microeconomics can be used as a frame to integrate elements of other disciplines into the economic approach to make interdisciplinary analyses of social (including economic) problems;
- Recognise microeconomic aspects in social problems and to analyse these aspects with a modelling approach (graphically as well as algebraically) (essential skills academic reasoning and working and problem solving).
Format
Lectures (one weekly) and tutorials (twice weekly).
Assessment method
- Mid-term examination, multiple choice questions (40% of the final grade);
- End-term examination, open questions (60% of the final grade).
Academic skills
This course focuses on the following academic skills:
- Analytical skills
- Being able to solve problems (identifying the problem, devising a path towards the solution, following this path, verifying the outcome) for more complex assignments.
- Being able to identify, interpret and critically evaluate the main line of reasoning, for more complex problems.
- Being able to evaluate evidence in text and presentations for more complex problems.
- Academic reasoning and working
- Thinking conceptually, thinking in terms of theory.
- Asking critical questions, having a curiosity-driven and critical attitude.
- Analysing questions from different perspectives.
- Identifying links between problems.
Effort requirements
Participate in 6 effort requirements tests in the Electronic Learning Environment (ELE) by answering a series of questions and solving problems and scoring on average at least 60% of all possible credits.
Course repeaters
Students who signed up for the course in (one or more of the) previous years, and did not drop the course in time, or failed the course, may participate in the course repeaters programme. Repeaters are not entitled to follow the regular tutorials. With respect to the teaching format, this implies that course repeaters:
- Can follow the regular lectures;
- Can subscribe for special repeaters tutorials (group size 50). The precise conditions are described below;
- Don’t have special tutorials just before each exam;
- Don’t have to full fill the effort requirements. (apart from the UU requirement to pass with a grade of 4 or higher (not rounded off); see the course manual for more details).
For all repeaters it is necessary that they have to register for the course to be able to participate in the exams.
Participation in the special repeaters tutorials is only possible if:
- You have registered yourself in time in Osiris student for this course. Only then you are entitled to do the exams.
- You have registered yourself in time for the special repeaters tutorials via Osiris.
- You show commitment by doing your homework every week. We will check it at the start of every tutorial.
- You show commitment by preparing yourself for each tutorial. It not, you will be excluded immediately of participation in the special repeaters tutorials.
- You show commitment by devoting enough time to this course. USE advises you strongly not to follow three courses in the first period.
- Work is no reason to dismiss classes.
Language of instruction
English.
Courses that build on Intermediate Microeconomics:
- Advanced Mathematics (ECB2VWIS)
- Industrial Organisation and Competition Policy (ECB3IO)
- Microeconomics and Behaviour of Financial Markets (ECB3ME)
- Game Theory (ECB3GT)
- Behavioural Economics (ECB3BE)
- Market Dynamics and Corporate Innovation (ECB3DSM)
- Labour Economics (ECB3ARBE)
Students are expected to have knowledge of:
- Microeconomics, Institutions and Welfare (ECB1MI) or Principles of Microeconomics (EC1PME)
- Mathematics for Economists (ECB1WIS)
- Statistics (ECB1STAT)