Microeconomics

URL study guide

https://studiegids.vu.nl/en/courses/2025-2026/E_EC_MICREC

Course Objective

This course covers the main theoretical concepts in consumer choice, firm behavior and analysis of imperfectly competitive markets. These methods are often used in economic research to assess the effectiveness of economic policy. Specific learning outcomes upon completion of this curricular item arebeing able to understand the relevance of economics for modern societies (Bridging theory and practice
- knowledge) acquiring knowledge in the decisions to be taken by individual consumers and producers to maximize utility and profit (Bridging theory and practice
- knowledge)gaining insight into the determination of the equilibrium outcomes in different market structures (Bridging theory and practice
- knowledge)analyzing firm behavior in monopolistic and oligopolistic markets (Bridging theory and practice
- knowledge)being able to evaluate public economic policy, including competition law, aimed at correcting market failures in imperfectly competitive markets (Bridging theory and practice
- application)understanding the impact of various forms of asymmetric information on economic transactions (Bridging theory and practice
- knowledge)learning about the tools that governments might use for addressing market failures (Bridging theory and practice
- application)

Course Content

This course focuses on fundamental microeconomic theory and applications. The course discusses the main theoretical concepts and policy applications in microeconomics. Applying economic tools of analysis helps students to gain an understanding of how decisions are being made at the micro level by firms, consumers and government. Microeconomics also helps evaluating observed outcomes and the consequences of policy choices. In particular, we cover consumer and producer behavior, game theory, market structures (perfect competition, monopoly, oligopoly) and market imperfections. The role of policy will be discussed throughout the course.

Teaching Methods

Lectures and seminars

Method of Assessment

Written final exam and written group assignments

Literature

Banerjee, S., 2015: Intermediate Microeconomics: A tool-building approach. Routledge (ISBN 9780415870054)Additional readings (to be specified).

Entry Requirements

Students are strongly advised to follow Math Refresher in the last week of August.