Microeconomics II is a continuation of Microeconomics I and deepens students’ understanding of modern microeconomic analysis concerning firm behaviour, the operation of markets under different forms of competition, and the main cases of market failure. The course examines perfect competition, monopoly, monopolistic competition, oligopoly and strategic interaction, as well as factor markets, general equilibrium, welfare economics, public goods, externalities, and asymmetric information. Teaching combines theoretical analysis, numerical and diagrammatic exercises, and applications to real economic issues.

Upon successful completion of the course, students will be able to:

• Analyse firm behaviour and decisions regarding production, pricing, and supply under different market structures.
• Interpret the functioning of competitive and non-competitive markets and compare their effects on prices, quantities, profits, and social welfare.
• Apply models of monopoly, monopolistic competition, and oligopoly to solve numerical, algebraic, and diagrammatic problems.
• Use basic tools of game theory to analyse strategic interaction among firms.
• Analyse factor markets and the determination of factor payments and employment under competitive and non-competitive conditions.
• Explain the basic concepts of general equilibrium, Pareto efficiency, and welfare economics.
• Evaluate cases of market failure, such as public goods, externalities, common-property resources, and asymmetric information.
• Interpret the effects of government interventions and institutional regulations on resource allocation and social welfare.

The course is organised into thematic units that cover the core areas of Microeconomics. Indicative structure:

1. Introduction to Microeconomics II. Link with Microeconomics I; basic concepts of markets, production, cost, and equilibrium.
2. Monopoly. Production and pricing decisions, market power, welfare loss, and regulatory intervention.
3. Price discrimination and pricing strategies. First-, second-, and third-degree price discrimination and applications.
4. Monopolistic competition. Product differentiation, short-run and long-run equilibrium, and advertising.
5. Oligopoly I. Cournot, Bertrand, and Stackelberg models.
6. Oligopoly II and game theory. Strategic interaction, dominant strategies, Nash equilibrium, cartels, and cooperation.
7. Factor markets. Input demand, marginal product, factor payments, competition, and monopsony.
8. General equilibrium. Edgeworth box, efficiency in exchange and production, and the contract curve.
9. Welfare economics. Pareto efficiency, fundamental welfare theorems, surplus, and redistribution.
10. Public goods and common-property resources. Optimal provision of public goods, the free-rider problem, and common resources.
11. Externalities and government intervention. Coase theorem, Pigouvian taxes and subsidies, and environmental policy.
12. Asymmetric information and special topics. Adverse selection, moral hazard, and signalling.
13. Review and synthesis.

Teaching is accompanied by the solution of numerical and diagrammatic exercises, discussion of applications, and interpretation of basic economic results.

Lectures (4 hours/week) and Tutorials (1 hour/week)

The total workload of 200 hours corresponds to 8 ECTS credits.

Assessment is conducted in Greek, and the final grade is determined as follows: final written examination 60%, mid-term examination/progress test 20%, and short exercises, quizzes, or in-class application questions 20%.

The final and mid-term examinations assess students’ understanding of key concepts, their ability to apply theoretical models, solve numerical and diagrammatic exercises, and interpret economic results. They may include multiple-choice questions, short-answer questions, essay questions, and application exercises.

The short exercises/quizzes component assesses the active application of course material during the semester and is not equivalent to mere physical attendance. The assessment criteria are posted on the course webpage on the e-class platform.

Support of the learning process through the e-class platform, posting of lecture presentations and educational material, use of diagrams/exercises, and electronic communication with students.