Major · Economics · Semester 5 · TY BA · 4 credits · 100 marks · 60 hours
Module 1: Market Structure: Monopoly and Monopolistic Competition (15 Hours)
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Monopoly - Measurement of Monopoly Power - Price Discrimination: Types and Degrees of Price Discrimination - Equilibrium under discriminating Monopoly - Regulation of Monopoly Market Product Differentiation in Monopolistic Competition - Chamberlin’s Alternative approach- Equilibrium under Monopolistic Competition - Excess Capacity
Module 2: Oligopoly (15 Hours)
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Meaning and Characteristics of Oligopoly Market - Rigid Prices - The Cournot Model - The Sweezy Model of Kinked Demand Curve - Collusive Oligopoly - Cartel: Centralised and Market Sharing Cartel - Imperfect Collusion- Price Leadership Models, Game Theory - Prisoner’s Dilemma, Nash Equilibrium and Dominant Strategy Equilibrium
Module 3: General Equilibrium and Welfare Economics (15 Hours)
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Concept of General Equilibrium and Walrasian General Equilibrium Model - Pareto Optimality – The Pareto Optimality Condition of Social Welfare - Marginal Conditions for Pareto Optimal Resource Allocation - Perfect Competition and Pareto Optimality - Arrow’s Impossibility Theorem
Module 4: Information Economics (15 Hours)
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Economics of Search and Search Cost - The Theory of Asymmetric Information-The Market for Lemons and Adverse Selection - Risk Preference and Expected Utility - The Problem of Moral Hazard - Market Signaling - Principal-Agent Problem- Market Failure- Remedies for market failure: Taxation, regulation, subsidies - Role of institutions in reducing information problems
Reference Books
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1
Jhingan M. L. (2012), Advanced Economic Theory, Vrinda Publications, Delhi.
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2
Mankiw N. Gregory (2015), Principles of Microeconomics, Cengage Learning.
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3
Patil K. A (Second edition, 2011, Marathi), Advanced Economic Theory-Micro Analysis, Shri Mangesh Prakashan, Nagpur.
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4
Salvatore D. (2006), Microeconomics: Theory and Applications, Oxford University Press, New Delhi.
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5
Varian Hal R. (8 th Edition 2010) Intermediate Microeconomics: A Modern Approach, East-West Press, New Delhi
