3. Competitive Supply and For content 3: Lecture Slides 3; Ch. 2, Homework 2 Due Market Ch. 8, Ch. 9, Ch. 18. Analysis (cont’d) 5 4. Strategy and Game Theory For content 4: Lecture Slides 4; Ch. 12, Ch. 13. 4. Strategy and Game Theory For content 4: Lecture Slides 4; Ch. 12, In-Class Quiz 2 Ch. 13. (cont’d) 6 Homework 3 handed out 5. Pricing with Market Power For content 5: Lecture Slides 5; Ch. 11. Homework 3 Due 7 Final Exam 8 List of Course Topics (tentative) Individual and Market Demand Decision making on the margin Consumer surplus Demand determinants Elasticity (calculation and determinants, own-price, cross-price, income elasticity) Demand estimation Revenue maximization Costs and Profit Maximization Cost concepts (opportunity cost, sunk cost; total cost, fixed cost, variable cost, average cost, marginal cost) Relationship between cost curves Profit maximization for a firm facing a downward sloping demand curve Difference between short-run (operating horizon) and long-run (investment/planning horizon) Economies of scale; economies of scope Competitive Supply and Market Analysis Perfect competition Firm's demand under perfect competition Profit maximization of price takers Short-run and long-run supply curves Market equilibrium in the short run and the long run; market dynamics Efficiency of competitive markets Tax incidence analysis Externalities and price controls Strategy and Game Theory Basics of Game Theory Nash equilibrium (NE) Simultaneous games and sequential games dilemma Prisoner’s Coordination games Cournot duopoly; Stackelberg duopoly; Bertrand duopoly Repeated interactions with repeated interactions Prisoner’s dilemma
5 3. Competitive Supply and Market Analysis (cont’d) 4. Strategy and Game Theory For content 3: Lecture Slides 3; Ch. 2, Ch. 8, Ch. 9, Ch. 18. For content 4: Lecture Slides 4; Ch. 12, Ch. 13. Homework 2 Due 6 4. Strategy and Game Theory (cont’d) Homework 3 handed out For content 4: Lecture Slides 4; Ch. 12, Ch. 13. In-Class Quiz 2 7 5. Pricing with Market Power For content 5: Lecture Slides 5; Ch. 11. Homework 3 Due 8 Final Exam List of Course Topics (tentative) Individual and Market Demand Decision making on the margin Consumer surplus Demand determinants Elasticity (calculation and determinants, own-price, cross-price, income elasticity) Demand estimation Revenue maximization Costs and Profit Maximization Cost concepts (opportunity cost, sunk cost; total cost, fixed cost, variable cost, average cost, marginal cost) Relationship between cost curves Profit maximization for a firm facing a downward sloping demand curve Difference between short-run (operating horizon) and long-run (investment/planning horizon) Economies of scale; economies of scope Competitive Supply and Market Analysis Perfect competition Firm's demand under perfect competition Profit maximization of price takers Short-run and long-run supply curves Market equilibrium in the short run and the long run; market dynamics Efficiency of competitive markets Tax incidence analysis Externalities and price controls Strategy and Game Theory Basics of Game Theory Nash equilibrium (NE) Simultaneous games and sequential games Prisoner’s dilemma Coordination games Cournot duopoly; Stackelberg duopoly; Bertrand duopoly Repeated interactions Prisoner’s dilemma with repeated interactions
220.620_AY16-17.docx