Course type
IWH-DPE Foundation Course, CGDE First-year Course
Lecturers
Professor Dr Simon Wiederhold (IWH, Martin Luther University Halle-Wittenberg) and Professor Dr Martin Quaas (Leipzig University)
Summary
This is the first course of the first-year triple sequence in Microeconomics.
The aim of the first part of the course is to provide students with a thorough understanding of the microeconomic theory of demand and production. Students will learn the theoretical foundations and necessary conditions for the functioning of competitive markets. They will also gain an understanding of the concept of market power and how different market structures influence market outcomes. In addition, students will learn how to derive key insights from these topics using appropriate mathematical tools.
In the second part of the course, students will be introduced to the fundamental theorems of welfare economics in general terms and will learn how to assess their limitations. They will acquire economic concepts and methods to evaluate distributive justice, particularly in the context of intergenerational decision-making and sustainability.
Schedule
14.10.2025 10:30-12:00 and 13:00-14:30 IWH, Conference Room, main building, Conference Room
27.10.2025 10:30-12:00 and 13:00-14:30 IWH, Leipziger Str. 100, 3rd floor, Conference Room
10.11.2025 10:30-12:00 and 13:00-14:30 IWH, Leipziger Str. 100, 3rd floor, Conference Room
24.11.2025 10:30-12:00 and 13:00-14:30 IWH, Leipziger Str. 100, 3rd floor, Conference Room
Content
1. Foundations and Theory of Demand
2. Theory of Production and Competitive Markets
3. Market Power
4a. General Equilibrium: Fundamental Theorems of Welfare Economics
4b. Economic concepts of distributive justice and sustainability
Course requirements
Attendance at all lectures is mandatory and a prerequisite to submit solutions for the assignments.
Following each session, students will receive a problem set which they need to solve within two weeks. Course completion requires passing a minimum of three out of four assignments.
Required Reading
1. Foundations and Theory of Demand
Mas-Colell, A., Whinston, M. D. & Green, J. R. (1995). Microeconomic theory. Volume 1. New York: Oxford University Press. Chapters 1-3.
Jehle, G.A. & Reny, P.J. (2011). Advanced Microeconomic Theory. 3rd Edition. Prentice Hall. Chapters 1-2.
2. Theory of Production and Competitive Markets
Mas-Colell, A., Whinston, M. D. & Green, J. R. (1995). Microeconomic theory. Volume 1. New York: Oxford University Press. Chapters 5 and 10.
Jehle, G.A. & Reny, P.J. (2011). Advanced Microeconomic Theory. 3rd Edition. Prentice Hall. Chapters 3-5.
Robinson, J. (1934). What is perfect competition? Quarterly Journal of Economics, 49(1), 104-120.
Hsieh, C. T., & Klenow, P. J. (2009). Misallocation and manufacturing TFP in China and India. Quarterly Journal of Economics, 124(4), 1403-1448.
3. Market Power
Mas-Colell, A., Whinston, M. D. & Green, J. R. (1995). Microeconomic theory. Volume 1. New York: Oxford University Press. Chapter 12.
Jehle, G.A. & Reny, P.J. (2011). Advanced Microeconomic Theory. 3rd Edition. Prentice Hall. Chapters 4-5.
De Loecker, J., & Warzynski, F. (2012). Markups and firm-level export status. American Economic Review, 102(6), 2437-2471.
Armangué-Jubert, T., Guner, N. & Ruggieri, A. (2025). Labor Market Power and Development. American Economic Review: Insights, 7(2), 177-195.
Mertens, M. & Mottironi, B. (2025). Do Larger Firms Exert More Market Power? Markups and Markdowns along the Size Distribution. Economics Letters (forthcoming).
4a. General Equilibrium: Fundamental Theorems of Welfare Economics
Mas-Colell, A., Whinston, M. D. & Green, J. R. (1995). Microeconomic theory. Volume 1. New York: Oxford University Press. Chapter 13.
4b. Economic concepts of distributive justice and sustainability
Roemer, J. E. (1996). Theories of Distributive Justice. Harvard University Press.
Registration
Please register for the course until September 30, 2025 by sending an e-mail to cgde@iwh-halle.de.