Course type
IWH-DPE Foundation Course, CGDE First-year Course
Lecturers
Professor Dr Simon Wiederhold (IWH, MLU) and Professor Dr Martin Quaas (UL)
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
12.10.2026 10:30-12:00 and 13:00-14:30 IWH, Leipziger Str. 100, 3rd floor, Conference Room
26.10.2026 10:30-12:00 and 13:00-14:30 IWH, Leipziger Str. 100, 3rd floor, Conference Room
09.11.2026 10:30-12:00 and 13:00-14:30 IWH, Leipziger Str. 100, 3rd floor, Conference Room
23.11.2026 10:30-12:00 and 13:00-14:30 IWH, Leipziger Str. 100, 3rd floor, Conference Room
Content
- Foundations and Theory of Demand
- Theory of Production and Competitive Markets
- Market Power
- General Equilibrium: Fundamental Theorems of Welfare Economics
- 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 to be completed within two weeks. To pass the course, students must achieve an average score of at least 50 points across the four assignments.
Required Reading
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.
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.
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 Mark-downs along the Size Distribution. Economics Letters, 255, 112500.
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.
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, 2026 by sending an e-mail to cgde@iwh-halle.de.