KUK - LMS

Syllabus

MODULE NO / UNIT	COURSE SYLLABUS CONTENTS OF MODULE	NOTES
Course Code: M-BECOC- 006 Course Name: Micro Economic Analysis-II
1	Managerial Theories of Firm Critical evaluation of marginal analysis; Average Cost Pricing model; Bain’s Limit Pricing Theory; Baumal’s Sales Revenue Maximization model (all four static models); Marris Model of Managerial Enterprise; Williamson’s Model of Managerial Discretion. Reading List • Bain, J. (1958). Barriers to New Competition. Harvard University Press, Harvard • Hirshleifer, J. & Glazer, A. (1997). Price Theory and Applications. Prentice Hall of India, New Delhi. • Koutsoyiannis, A. (1979).Modern Microeconomics (2nd Edition). Macmillan Press, London. • Pindyck, R. &Rubinfeld, D. (2018). Microeconomics (9th Edition). Pearson Education. • Varian, H. (2000). Microeconomic Analysis. W.W. Norton, New York.
2	Factor Pricing Pricing of factors of production (modern approach under perfect and imperfect market); Elasticity of technical substitution and factor shares; Technical progress and factor shares; Macro theories of distribution – Ricardo, Marx, Kalecki and Kaldor. Reading List • Bronfenbrenner, M. (1979). Income Distribution Theory. Macmillan, London. • Da Costa, G.C. (1980). Production, Prices and Distribution. Tata McGraw Hill, New Delhi. • Hirshleifer, J. & Glazer, A. (1997). Price Theory and Applications. Prentice Hall of India, New Delhi. • Koutsoyiannis, A. (1979). Modern Microeconomics (2nd Edition). Macmillan Press, London. • Pindyck, R. & Rubinfeld, D. (2018). Microeconomics (9th Edition). Pearson Education.v • Varian, H. (2000). Microeconomic Analysis. W.W. Norton, New York.
3	General Equilibrium and Market Efficiency The Walrasian approach to general equilibrium; Existence, stability and uniqueness of the partial equilibrium; Pareto Optimality; Maximization of social welfare; Market failure: Externalities, Public goods and asymmetric information; Moral Hazard and Adverse selection; The theory of second best; Economics of information – search costs, market signaling. Reading List • Boadway, R.W. & Bruce, N. (1984). Welfare Economics. Basil Blackwell, London. • Graff, J. De V. (1957). Theoretical Welfare Economics. Cambridge University Press, • Green, H. & Walsh, V. (1975). Classical and Neo-Classical Theories of General Equilibrium. Oxford University Press, London. • Hansen, B. (1970). A Survey of General Equilibrium Systems. McGraw Hill, New York. • Henderson, J.M. & Quandt, R.E. (1980). Microeconomic Theory: A Mathematical Approach. McGraw Hill, New Delhi. • Koutsoyiannis, A. (1979). Modern Microeconomics (2nd Edition). Macmillan Press, London. • Quirk, J. & Saposnik, R. (1968). Introduction to General Equilibrium Theory and Welfare Economics. McGraw Hill, New York. • Weintrub, E.R. (1974). General Equilibrium Theory. Macmillan, London.
4	Choice Under Uncertainty Inter-temporal choice in consumption; Economics of Uncertainty: Risk and Uncertainty in Demand Choices, Measuring Risk, Utility Theory and Risk Aversion, Gambling and Insurance, Risk aversion and Indifference curves, Reducing risk and uncertainty, Risk pooling and risk spreading, Mean-variance analysis and portfolio selection. Theory of Games Extensive forms and normal forms, dominant strategies and elimination of dominant strategies, Nash equilibrium, cooperative and non-cooperative games, sequential and simultaneous games, applications with oligopoly markets- Cournot, Bertrand and Stackelberg. Reading List • Borch, K.H. (1968). The Economics of Uncertainty. Princeton University Press, Princeton. • Diamond, P.A. & Rothschild, M. (Eds.). (1978). Uncertainty in Economics: readings and exercises. Academic Press, New York. • Gravelle, H. &Rees,R. (2008). Micro Economics. Dorling Kindersley. • Jehle, Geoffrey A. & Reny, Philip J. (2008). Advanced Micro Economic Theory. Dorling Kindersley. • Varian, H. (2003). Intermediate Microeconomics. East-West Press.