After an introduction to economic problems, the course starts discussing the the role of incentives in individual decision making, and the opportunity cost of these decisions. Thereafter we discuss how strategic interaction between economic agents (individuals, firms, government) shapes the outcomes. We discuss the (in)efficiency of institutions along a variety of problems. Finally, we address firm's decision making and price setting in various market environments. We discuss benefits and problems in markets together with the measures the state can take in order to reduce these inefficiencies. The course contents are as follows:
1. Introduction. Economic problems and Capitlism. Hockey Sticks, Inequality, Comparative Advantage, Housholds, and Firms.
2. Individual Decision Making. Scarcity, Choice, and Opportunity Cost
3. Collective Decision Making (1). Introduction to Game Theory and Strategic Interaction. Nash Equilibrium.
4. Collective Decision Making (2). Public Goods, Altruism and Social Preferences.
5. Collective Decision Making (3). Competition and Conflict.
6. Economic Institutions. Efficiency, Fairness, and Bargaining
7. Theory of the Firm (1). Division of Labor, Wages, Ownership and Control
8. Theory of the Firm (2). Customers, Cost concepts, Price Setting, Advertisement
9. Supply and Demand. Markets, Outcomes, Prices, and Quantities.
10. Market Dynamics. Rent-Seeking, Price Setting, and Equilibrium Dynamics.
11. Market (In)efficiency. External Effects, Incomplete Information, Government Policies.
12. Economic Inequality. Reasons, Results, and Policies
13. The Economics of the Environment. Incomplete Contracts, and Missing Markets.