Advanced Microeconomics part 2 2400-ZU1MIZ2

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.

Continuation of topics from Part 1

Topics:
3. Short Introduction to Producer Theory
4. General Overview of Microeconomics: Marshall vs. Chamberlain-Robinson vs. Arrow–Debreu
• Standard Economic Model (SEM) vs. General Equilibrium Models
5. Social Interactions - Market
• Perfect Competition; Vernon Smith's Market Experiments
• Monopoly - Tools for Capturing Consumer Surplus, Price Discrimination, Auctions, Bundling...
• Information Theory - Attention Economics