Microeconomics, Uncertainty and Information
Objectives
This curricular unit aims to familiarize students with the main problems studied by Microeconomics, including an introduction to problems of uncertainty and information asymmetry.
At the end of this course, the student will have acquired knowledge, skills and competences that will allow him to:
Explain the concept of utility and how rational agents make consumption choices.
Explain the interaction between supply and demand and the way in which equilibrium market prices are determined.
Explain the elasticity of supply and demand and their effects on the market.
Explain the main economic concepts involved in the choices made by companies in relation to production.
Explain how perfectly competitive markets and monopolies work (including different pricing strategies).
Explain the theory of expected utility and the way rational agents make choices in a context of uncertainty.
Explain the concepts of moral hazard and adverse selection and discuss its consequences.
General characterization
Code
12927
Credits
3.0
Responsible teacher
Duarte Miguel Machado Carneiro de Brito
Hours
Weekly - 2
Total - 28
Teaching language
Português
Prerequisites
None
Bibliography
Introdutório/Basic
José Mata, Economia da empresa, 9ª ed. Lisboa. Fundação Calouste Gulbenkian, 2016
David Henriques e Teresa Vasconcelos e Sousa, Introdução à Microeconomia - Livro de Exercícios, Escolar Editora, 2011
Intermédio/Intermediate
Hal R. Varian, Intermediate Microeconomics: A Modern Approach. 9th ed.;
Avançado/Advanced
Walter Nicholson and Christopher Snyder Microeconomic Theory: Basic Principles And Extensions, 10th Edition
Teaching method
Theoretical/practical lectures involving theory with some applications and exercises solved autonomously.
Evaluation method
Course evaluation is determined by two mid-term tests with an equal weight in the final grade (and no minimum grade required in each test)
Subject matter
1. Consumer theory
2. Cost theory
3. Demand, supply and market equilibrium
4. Perfect competition
5. Monopoly
6. Price discrimination under monopoly
7. Expected Utility Theory
8. Information Asymmetry