Course outline and syllabus
Advanced Micro Economics
Course outline
31st January: Introduction
7th February: How do we understand the coordination of economic processes? The Transaction Cost
Approach to economic organization. Milgrom/Roberts ch. 2
14th February: The Coase Theorem. The importance of “No Wealth Effects”. Milgrom/Roberts ch. 2
28th February: Externalities. Game theory (I). Frank ch. 17 pp. 582 – 598, Varian ch. 27.2, 28
6th March: Externalities. Game theory (II). Frank ch. 17 pp. 582 – 598, Varian ch. 27.2, 28
13th March: The standard model of firms: The view that technology (“nature”) imposes constraints on firms.
Varian ch. 18
20th March: Introduction of “Assignment”: Presentation of articles for the group work, requirements to
student reports and to the presentations of the reports and group formation
27th March: Exercises in preparation of the Midterm Examination
3rd April: Midterm Examination
10th April: The standard model of firms: Profit maximization and Costs. Varian ch. 19, pp. 334-345
17th April: Maximizing firm value by means of efficient employment contracts and incentives.
Milgrom/Roberts ch. 5
24th April: Presentation of paper from “Assignment”- 15 minutes each group.
30th April: Efficient wages. Milgrom/Roberts ch. 6 (pp. 166 – 190) and ch. 8
3th May: Public goods. Frank ch. 18 pp.619 – 628
8th May: Exercises in preparation of the final examination and closing.
Obligatory reading
Frank, R (1997), Microeconomics and behavior, ch. 17 (pp. 582 – 598), ch. 18 (pp.619 – 628), McGraw-Hill
Milgram, P, Roberts, J (1992), Economics, Organization & Management, ch. 2, 5, 6 (pp. 166 – 190), 8, New
Jersey
Varian, H R, Intermediate Micro Economics, ch. 18, 19 (pp. 334-345), 27.2, 28, seventh edition
Selected reading
Murphy, K, J, “Executive Compensation”, Marshall School of Business, University of Southern California,
1999
Romer, P, Implementing a national technology strategy with self-organizing Industry Investment Boards
(pages 369-370, 381-388 are not included) (in Audretsch, D (ed), Industrial Policy and Competitive
Advantage, Volyme I, Cheltenham 1998)
Articles by Coase and Williamson (more information later on)
Meeting hours:
The lecturer – Prof. Jan Gunnarsson - is available for students every Tuesday and Friday from 11 a.m. until
1 p.m. in Faculty Office KJ 100.
Please, respect the meeting hours!