SubjectsSubjects(version: 945)
Course, academic year 2023/2024
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Microeconomics and Behaviour - JEB060
Title: Mikroekonomie a chování
Guaranteed by: Institute of Economic Studies (23-IES)
Faculty: Faculty of Social Sciences
Actual: from 2018
Semester: summer
E-Credits: 4
Examination process: summer s.:combined
Hours per week, examination: summer s.:2/0, Ex [HT]
Capacity: unknown / unknown (40)
Min. number of students: unlimited
4EU+: no
Virtual mobility / capacity: no
State of the course: cancelled
Language: Czech
Teaching methods: full-time
Teaching methods: full-time
Additional information: http://samba.fsv.cuni.cz/~kameni/MIKROEKONOMIE%20A%20CHOVANI/
Note: course can be enrolled in outside the study plan
enabled for web enrollment
priority enrollment if the course is part of the study plan
Guarantor: PhDr. Jiří Kameníček, CSc.
Pre-requisite : JEB003
Examination dates   Schedule   Noticeboard   
Annotation -
Last update: PhDr. Jiří Kameníček, CSc. (07.02.2017)
This course follows and complements the course Economics I (JEB003).
The lectures concentrate on behavioural and practical aspects of microeconomics. Students are trained in understanding economic phenomena, processes and problems as part of our world. The aim is to improve students’ ability to understand and explain economic phenomena using the mastered theories.

The Lectures are presented in Czech language.
Aim of the course -
Last update: PhDr. Jiří Kameníček, CSc. (07.02.2017)

The aim of the course is to deepen students’ knowledge in the area of behavioural economics. The themes of the lectures will cover all aspects of behavioural economics. Students who pass the course will be provided with basic instruments, methodical procedures and abilities to solve microeconomic problems effectively.

Literature -
Last update: PhDr. Jiří Kameníček, CSc. (07.02.2017)

Literature: Robert H. Frank, Microeconomics and Behavior. 6th ed. New York: McGraw-Hill 2005

Jiří KAMENÍČEK, Lidský kapitál; (Bohatství, které dřímá v nás), Karolinum, Praha 2012 (druhé upravené vydání), ISBN 978-80-246-2139-5


The Actual Hand-outs are published on:

 http://samba.fsv.cuni.cz/~kameni/MIKROEKONOMIE%20A%20CHOVANI/

Teaching methods -
Last update: PhDr. Jiří Kameníček, CSc. (07.02.2017)

Individual topics and models will be presented in such a manner that allows students to find easily their own ”key” to understanding, based on their personal experiences. Students will be motivated by the lecturer to discuss. In lectures students should not only create a vivid picture of the theory presented, they should also get familiar with how the processes work in real economic activities.

Requirements to the exam -
Last update: PhDr. Jiří Kameníček, CSc. (07.02.2017)

In order to pass, students are required to participate actively in the lectures and to pass successfully the final exam. Proactive approach in lectures will be taken into account and may help the student to a better grade.

Syllabus -
Last update: PhDr. Jiří Kameníček, CSc. (07.02.2017)

Syllabus

1. Introductory notes on the methods of studying; positive and normative approach; investment in human capital; the main characteristics of the subject, definitions and examples; education and training in skills; human capital and family; other areas of human capital investment.

2. The most frequent forms of human capital investment; training in skills and its outcome; training in specific skills and its outcome; in-work training vs. education in schools; the most common motivations to investing in human capital.

3. Introduction into the theory of (rational) addiction; the model of addiction; adjacent complementarity and addiction; strengthening and insatiability; challenging situations, setbacks in life and the threat of addiction; abstinence and shock therapy in the process of withdrawal; myopic model of addiction, addiction vs. habit.

4. Decision making in social environment; the use of rational consumer choice theory as a tool to model different types of human behaviour (greediness, envy, Homo Oeconomicus, altruism); individual margins of (fair) distribution; graphic models of social interactions and their interpretation.

5. Uncertainty and decision making; concave utility function; risk-aversion and risk-seeking; asymmetric value function; the concept of hedonism; causes and signs of moral hazard; examples of preconception.

6. Introduction into the theory of information; the Costly-to-fake principle, the Full-disclosure principle of information; examples of signals: the market for lemons, conspicuous consumption, adverse selection (illustrated on the behaviour of insurance company); other types of signals; discouragement and negotiation; ultimate games (take it or leave it).

7. Strategic preferences; altruist behaviour, non-egoist preferences; preference of aggressive behaviour; the genesis of preferences; the parable of doves and hawks.

8. Commitment problem and prisoner’s dilemma; cheating and the costs of scrutiny; interpretation of the model; the rule of law as a precondition for economic prosperity; the specificities of post-communist countries; freedom of decision-making and acting; how can individuals contribute to reaching the ideal of the rule of law.

9. Production factor markets; labour markets; demand for labour, demand curve; supply of labour, supply curve; compensating differentials in wages; discrimination on labour markets; statistical discrimination; trade unions, the law on minimum wage; internal wage structure; economics of superstars.

10. General interconnectedness of economy and welfare; simple exchange economy; Edgeworth’s rectangle diagram; Pareto’s  concept of optimum allocation, contracts curve; difference between optimality and fairness; production efficiency, the rectangle diagram of production; production possibilities frontier; marginal rate of transformation and marginal rate of substitution; optimum composition of the consumption basket; the benefits of international trade.

11. External costs; the reciprocal nature of externalities, Coase theorem; the example of a conflict between two entrepreneurs; the property rights; efficiency and freedom of expression; positive externalities; position externalities, examples of "positional arm race"; the rules for taxing externalities.

12. Public goods; how to determine the optimum amount of public goods; public choice, majority voting; local public goods, Tiebout model; Rent Seeking; redistribution of income, fairness and effectiveness; Rawls criticism of the concept of marginal productivity; methods of redistribution.

Entry requirements -
Last update: PhDr. Jiří Kameníček, CSc. (07.02.2017)

The Students should be the absolvents of Economics I, JEB003.

 
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