Advanced Microeconomics part 1 2400-ZU1MIZ1
The goal of this course is to present a new approach to microeconomic analysis based on experimental and computational methods. By combining these methods, we can test economic theories and more effectively analyze real economic problems. This is the first step toward fully introducing complexity issues into microeconomic analysis. The classes will cover selected microeconomic topics. Each session is divided into two parts: in the first part, students participate in experiments or conduct simulations; in the second part, economic theory is challenged/examined based on the previously obtained results. The instructor will present practical implications as well as theoretical and practical computational tools that will allow the repetition of experiments, simulations, and analyses.
In education, scientific curiosity should be a significant motivating factor for acquiring knowledge and self-development. However, this type of curiosity erodes with age, and it becomes increasingly difficult to awaken it among students. The "chalk and talk" approach can completely discourage students from further exploration of theoretical models, particularly in microeconomics. On the other hand, microeconomics has tremendous potential to create scientific curiosity because its models directly relate to observed economic behaviors of people. However, we need a stimulus that triggers curiosity. This encouragement can be a natural desire for self-knowledge.
Ad hoc research will be used in the lecture to create scientific curiosity based on one's curiosity. Before the lectures, students participate in online surveys, being passive research subjects. Before this survey/experiment, they may have no knowledge about the study. Shortly after the survey, they are informed that the results will be used to analyze microeconomic models and are encouraged to answer questions about whether their decisions or responses were consistent with optimal or effective economic theory and how these decisions may impact the welfare of others. In this way, the teacher creates an information gap among students—a sense of lack, an unmet need for knowledge about the decisions made. A "scientific curiosity" arises, which can be addressed during lectures and/or explored by the students themselves.
Topic 1 Course Overview;
• Introduction to Experimental and Computational Microeconomics;
• Introduction to R-CRAN, MAXIMA, NetLogo
Topic 2 2. Selected Topics in Consumer Choice Theory
• Rationality and the Standard Economic Model (SEM);
• Behavioral vs. Ecological Rationality by Vernon Smith;
• Intertemporal Choice:
• Financial and Behavioral Approach;
• Uncertainty and Risk;
• Risk Perception and Aversion;
• Ergodicity of Economic Processes.
Type of course
Prerequisites (description)
Course coordinators
Learning outcomes
KNOWLEDGE:
•Understands the connections between microeconomics, institutional conditions, and socio-cultural context (S2A_W02, S2A_W03, S2A_W04, S2A_W05).
• Knows the experimental approach to studying socio-economic phenomena using laboratory or computational experiments (S1A_W01).
• Has knowledge of software necessary for creating laboratory or computational experiments (CRAN, MAXIMA, NetLogo) (S2A_W06).
SKILLS:
• Can independently and critically analyze basic economic texts (S2A_U02).
• Can use various data sets for conducting their own research (S2A_U04, S2A_U02, S2A_U09, S2A_U10, S2A_U11).
SOCIAL COMPETENCES:
• Is critical of current economic problems and strives for a rational explanation of surrounding economic and social phenomena, learns to think, speak, and write logically and coherently (S2A_K06, S2A_K04).
Assessment criteria
A total of 51 points is required to pass:
• Written Exam (open everything) (100 points)
• Participation and activity (20 points)
Bibliography
Students should base their understanding of microeconomic theory on the following primary textbooks:
• Varian H. R. (2014). Intermediate Microeconomics: A Modern Approach: Ninth International Student Edition. WW Norton & Company.
• Hal R. V. (2016). Microeconomic Analysis. WW Norton & Company.
Supplementary materials:
• Kreps D. (1990). A Course in Microeconomic Theory. Princeton University Press.
• Chiang A. C. (1984). Fundamental Methods of Mathematical Economics. McGraw-Hill.
• Articles suggested by the instructor.
Additional information
Additional information (registration calendar, class conductors, localization and schedules of classes), might be available in the USOSweb system: