FLAME UNIVERSITY
ECON301: MICROECONOMICS-II
DRAFT COURSE SYLLABUS – 2025
Instructor: Manasvi Sharma
Email:
[email protected]Office: APJ 221
Office hours: TBD (by appointment)
Course Description:
This is a three-credit condensed course in microeconomic theory. This course aims to provide
students an exposure to recent and advanced theories and models of microeconomics. This is a
Quantitative Intensive (IQ) course. This course will help students develop a strong command
over microeconomic theories that are necessary for a proper understanding of various economic
activities and critically analyzing public policy.
Pre-requisites:
ECON201, ECON221
Course Objectives:
1. To expose students to basic mathematical tools and techniques widely used in
microeconomic analysis.
2. To impart a well-rounded understanding of markets.
3. To ensure that the students understand strategic interaction and game-theoretic modeling
4. To generate an appreciation of general equilibrium without undermining the importance of
partial equilibrium analyses.
5. To enable students to conceptualize the trade-off between efficiency and equity in the
context of welfare.
6. To provide an understanding of market failure and its causes, with particular emphasis on
information asymmetries
Class Policies:
All exams will be closed book.
Late submissions of in-class assignments will not be accepted.
Need permission from higher authorities if missed midterm/end-term exams.
Attendance will not be given if a student is not present in the class.
Microeconomics Books for this course:
Required Readings
1. Pindyck and Rubenfeld (8th e): Microeconomics. Pearson
2. Nicholson W. and Christopher Snyder. 2017. Microeconomic Theory:
Basic Principles and Extensions (12th e). Cengage India Private Limited.
3. Carlton B. and Perloff J.M. 2015. Modern Industrial Organization (4th e).
Pearson. ISBN: 978-1292087856
4. Varian, H.R. 2010. Intermediate Microeconomics - A Modern Approach
(8e). W.W. Norton & Company.
5. Tadelis S. Game Theory: An Introduction. Princeton University Press,
2013.
Suggested Readings
1. Hoy, M., J. Livernois, C. McKenna, R. Rees and T. Stengos. 2001.
Mathematics for Economics (2e). MIT Press.
2. Osborne, M.J. 2004. An Introduction to Game Theory (1e). OUP.
3. Gibbons R. Game Theory for Applied Economists. Princeton University
Press.
Session Plan
Tentative
Sl. No Topics Readings
Hours
Perloff et al. (2015) : Chapter 3., 6
Pindyck et al. : Chapter 8, 9, 10,
1 Perfect competition
Nicholson et al.(2017) : Chapter
12
(i) Monopoly 8
(ii) Price Discrimination: First-, second-
and third-degree discrimination,
intertemporal price discrimination, peak- Nicholson et al. (2017): Chapter
2
load pricing, two-part tariff. 14, Pindyck et al. : Chapter 10, 11
à PROBLEM SET 1 (Tentative)
Product differentiation and monopolistic Nicholson et al. (2017): Chapter 4
3
competition. 14., Pindyck et al. : Chapter 12
12
Oligopoly: Cournot and Bertrand models,
Tadelis, chapter 3-6, Nicholson et
leadership and Stackelberg model,
4 al. (2017): Chapter 15
competition versus collusion.
Pindyck et al. : Chapter 12
à PROBLEM SET 2 (Tentative)
12
Game Theory: Strategic interaction, Tadelis, chapter 3-6, Gibbons,
dominant strategy, Nash equilibrium, Pindyck et al.: Chapter 13
5
Prisoner's Dilemma, Simultaneous games,
Sequential games
Market Failure***: Positive and negative Nicholson et al. (2017): Chapter 3
6 externalities with examples, public goods, 19,
asymmetric information. Varian, H.R. (2010): Chapter 36
***This topic will be covered if time permits
Total: 45 sessions
Assessment and Evaluation Components:
Components Weightage
Problem Sets 25%
25% - TENTATIVELY
Midterm Exam
BEFORE DIP BREAK
End Term Exam (the final exam will cover the entire
40%
syllabus)
Class Participation 10%
