INDIAN INSTITUTE OF MANAGEMENT KOZHIKODE

Post Graduate Programme in Management

Course Outline

Course Code and Course Title PGP 105: Microeconomics

Course type Compulsory
Pre-requisites (if any) NIL
Course Credit 2.5
Total No. of Sessions 20
Session Duration 75 minutes
Term I
Year and Batch 1st Year 2016-17, PGP21
Sections (if any) C, D

Instructor(s) Dr. Shubhasis Dey

Contact Details Dr. Shubhasis Dey: 0495-2809115;
s.dey@iimk.ac.in

Office Dr. Shubhasis Dey: Faculty Block 1, Room No.

15
Consultation Hours By appointment

Introduction

Microeconomics is the study of how individual economic units—firms and households—make

decisions and how these decisions interact to produce observed economic outcomes. The past
few decades have seen rapid developments in the field of microeconomics. The tools of game
theory have been refined and applied to the understanding of strategic interactions in diverse
domains. Developments in the economics of uncertainty, the economics of incentives and
information and the economics of organizations have made microeconomics a more useful tool
than ever to understand the complex economic environment of contemporary business. The
same developments also allow a more nuanced analysis of market and government failure and
what can be done about them.

Learning Outcomes/Course Objectives

At the end of the course, the students would be able to

 appreciate and critically evaluate microeconomic models
 apply these models to the analysis of concrete business situations

Textbooks and Learning Materials

Text Book(s)

Pindyck, R.S., Rubinfeld, D.L. and Mehta, P.L. (2009), Microeconomics, 7th edition, Pearson
Ltd. [PRM]

Reference Book(s)

Kreps, D.L. (2011), Microeconomics for Managers, Viva-Norton student edition, Viva Books
Ltd. [Kreps]
Additional Reading(s)

Electronic copies of relevant additional reading materials will be distributed as and when
required.

Technology and Software (if any)

NIL

Other Resources (Journals, Internet Websites) (if any)

NIL

Pedagogy Used/Learning Process

This course uses a variety of pedagogical tools such as lectures, discussions, real-life examples,
classroom experiments, exercises, videos, etc. to achieve its learning objectives. The instructors
expect the students to participate actively in the class. Students are expected to come prepared
in the class with the textbook readings or other assigned materials and participate in the critical
evaluation of the topics discussed.

Evaluation Components/Assessment of Student Learning

Assessment Tool Percentage Description

Quiz 20% These components are required to check and
Midterm Examination 25% evaluate students’ understanding of
End-term Examination 35% microeconomic concepts and application of these
concepts in solving managerial decision-making
problems.
Class Participation 20% Students are expected to work in teams or
(Classroom individually for the classroom experiments and
Experiments & exercises that provide them opportunities to
Exercises) participate in actual microeconomic decision-
making problems and critically explore diverse
perspectives in arriving at their solutions.

Session Plan

Session Module Topics Chapter No. / Reading

material / Cases
1-2 Introduction Introduction to [PRM] Chapter 1 pp. 3–
Microeconomics, Demand and 10, 13–16; Chapter 2 pp.
Supply, Elasticity of Demand 19–35
3-4 Analysis of Demand Consumer Choice [PRM] Chapter 3 pp. 61–
82, 89–91; Chapter 4 pp.
103–119
5-7 Analysis of Supply Technology and Costs [PRM] Chapter 5;
Chapter 6 pp. 171–200
8-9 Market Structures Perfect Competition [PRM] Chapter 7;
Chapter 8
10 Monopoly – Introduction to [PRM] Chapter 9 pp.
Pricing with Market Power 293–300, 304–316
Midterm Examination
 11-12 Pricing with Market [PRM] Chapter 10 pp.
Power – Price 333–353
Discrimination
13-16 Game Theory and Oligopoly [PRM] Chapter 11 pp.
377–395; Chapter 12 pp.
405–411, 416–432
17 Market Failures Externalities and Public [PRM] Chapter 16 pp.
and the Role of Goods 529–533, 550–553, 557–
Government 563
18 Introduction to Decision-making under [PRM] Chapter
Information Uncertainty 18 pp. 595–
Economics 611, 621–626
19-20 Information Decision-making under [Kreps] Chapter 18–19;
Economics Information Asymmetries [PRM] Chapter 17 pp.
567–584
End-term Examination

Additional Instructions (if any)

NIL