| Course title | Microeconomics Analysis |
| Course code | EkonM003 |
| Credit points (ECTS) | 5 |
| Total Hours in Course | 135 |
| Number of hours for lectures | 20 |
| Number of hours for seminars and practical classes | 20 |
| Number of hours for laboratory classes | 0 |
| Independent study hours | 95 |
| Date of course confirmation | 21/06/2018 |
| Responsible Unit | Institute of Economics and Finance |
| Course developers | |
| Dr. oec., Anastasija Vilciņa |
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| There is no prerequisite knowledge required for this course | |
| Replaced course | |
| Ekon5090 [GEKO5090] Microeconomics Analysis |
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| Course abstract | |
| The topics included in the study course provide expanded knowledge of market activity and its stability conditions, which include the analysis of people's economic behavior, questions of production theory, which lead to an understanding of the conditions of profit maximization in various forms of competition. The aim of the study course is to provide in-depth knowledge about the motivation of private households and companies in the process of consumption and economic decision-making. After completing the study course, students will be able to choose the appropriate consumer and producer behavior model in the context of the interaction of microeconomic processes. | |
| Learning outcomes and their assessment | |
| 1. Expanded knowledge and understanding of market equilibrium stability criteria and consumer behavior models, among behavioral economics findings - test 1, exam
2. In-depth knowledge of production theory and understanding of the producer's behavior patterns in the economic decision-making process in various forms of market competition - 2nd test, exam. 3. Knowledge of the interaction of microeconomic processes, the range of their regulation, the impact on indicators of the well-being of the population and the competitiveness of companies - independent work. 4. Skills to apply knowledge about profit maximization, cost minimization conditions and pricing methods in specific forms of market competition - exam 5. Skills to investigate, using theoretical insights, analytical calculations and the relevant legal regulation, behavior models of consumers and producers, formulating proposals for maximizing public and personal benefit - independent work 6. Ability to develop critical thinking in selecting information, using research methods, forming conclusions and strengthening self-confidence by presenting research and defending an opinion in a discussion. – independent work, exam 7. Ability to independently formulate and critically analyze consumer and producer behavior models, determining the economic and legal aspects that promote or limit them, integrate knowledge of microeconomics and other economic sciences - tests, independent work, exam |
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| Course Content(Calendar) | |
| In full-time face-to-face studies:
1. The importance and role of microeconomic analysis in economic science. (lecture - 1 hour) 2. Analysis of the market balance and its stability. Pareto optimality. (lectures - 1 hour, practical work - 1 hour) 3. Utility, its evaluation, interpretation, use to influence consumer behaviour. (lectures - 2 hours, practical work - 1 hour) 4. Knowledge of behavioural economics: Prospect theory, experimental economics, intertemporal choices, nudging (lectures - 2 hours, practical work - 2 hours) 5. Optimal consumption plan. (lecture - 1 hour) 6. Comparison of Hicks and Slutsky theories for the interpretation of substitutability and income effects. 7. Labour market analysis. (lectures - 2 hours, practical work - 2 hours) Test 1 – analysis of demand, supply, elasticity, consumer behaviour, labour supply and demand (1 hour) 8. Analysis and use of production factors and their elasticity. (lectures - 2 hours, practical work - 2 hours) 9. Production cost flexibility and cost minimization models. (lectures - 2 hours, practical work - 2 hours) 10. Entrepreneurs' experience in creating a successful business (study tour (or meeting with entrepreneurs) - 4 hours) 11. Analysis of market forms. Analysis of market forms of perfect competition, monopoly and monopolistic competition. Loss to society and the buyer in a monopoly market. Demonopolization measures, implementation and restrictions. (lectures - 2 hours, practical works - 2 hours)) 12. Analysis of manufacturers' behaviour and pricing methods in an oligopoly. Herfindahl-Hirschman index and analysis of production concentration share. Collusion and game theory. Limiting distortions of competition. (lectures - 2 hours, practical work - 2 hours) 13. Pricing strategies for companies with market power. Degree of market power of the company, Amoroso-Robinson equation. First, second, third degree price differentiation. Possibilities of creating sets of goods. (lectures - 2 hours, practical work - 1 hour) 2nd test – analysis of the use of production factors and models of cost reduction and profit maximization, analysis of market forms. Pricing strategies. (1 hour) |
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| Requirements for awarding credit points | |
| The student must participate in discussions during the practical lessons, present an independent study, write 2 tests, as well as a final exam during the session. | |
| Description of the organization and tasks of students’ independent work | |
| Independent work. Students choose one topic from the list prepared by the teacher. Describes its theoretical basis according to microeconomic theory, as well as legal, political context. Selects and analyses the data required for the study. Formulates proposals for increasing economic benefits. Presents during the practical seminars, according to the presentation schedule, defends the opinion in the discussion with other students and the teacher. Essay: Example of Behavioral Biases. The student writes a short essay on a practically observed example of behavioral prejudice, referring to the theoretical knowledge mentioned in the lectures. The grade of the essay does not affect the final grade, but is a prerequisite for receiving the final grade. | |
| Criteria for Evaluating Learning Outcomes | |
| Exam. The final assessment consists of:
• Test 1 – test with tasks (20%) • Test 2 – test with tasks (20%) • Presentation of Independent work, discussion (10%) • Activity in seminars (10%) • Essay (Example of Behavioral Biases) – (Pass/Fail) • Exam (written form) (40%) 10% corresponds to one point on the 10-point study results evaluation scale. |
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| Compulsory reading | |
| 1.Škapars R. Mikroekonomika. Loģiskās shēmas. Rīga: Ekonomikas pētījumu un biznesa izglītības institūts, 2007. 370.lpp
2.Wang S. Microeconomic Theory. Springer Nature Singapore, 2018. pp 461 3.Sloman J., Garratt D., Guest J., Jones E. Economics for Business. Pearson Education, 2019. pp 690 4.Whitehead J.A. Microeconomics: a global text. Routledge, 2010. pp 495 5.Jaunzems A. Mikroekonomika teorija un analīze. Ventspils augstskola, 2013. 900 lpp 6.Dhami S. The Foundations of Behavioural Economic Analysis. Oxford University press, 2016. pp 1764 |
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| Further reading | |
| 1.Kānemans D. Domā ātri, domā lēnām. Jumava, 2012. 550 lpp
2.Thaler R.H., Sunstein C.R. Nudge. Penguin books. 2021. pp 367 3.Latvijas spēks ilgi pastāvēt. Kolektīva zinātniskā monogrāfdija B. Rivžas redakcijā. Latvijas Zinātņu akadēmija, 2022. 479 lpp. 4.Strautiņš P. Latvijā dzīvot ir interesanti. Jāņa Rozes apgāds, 2019. 319 lpp. |
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| Periodicals and other sources | |
| 1.Latvijas konkurences padomes mājaslapa. Pieejams: https://www.kp.gov.lv/lv
2.Sabiedrisko pakalpojumu regulēšanas komisijas mājaslapa. Pieejams: https://www.sprk.gov.lv/ 3.Latvijas Bankas uzturēta ekonomiskās analīzes vietne. Pieejams: https://www.makroekonomika.lv/ 4.LBTU datu bāzes. Pieejams: https://lbtufb.lbtu.lv/lv 5.ScienceDirect zinātnisko rakstu datu bāze. Pieejams: https://www.sciencedirect.com/ |
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| Notes | |
| Compulsory course for the ESAF academic Master programme Economics | |