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Economic Models of Choice and Strategic Interaction

Code: 106201
Credits: 6
2026/2027
Degree programme Type Course
Contemporary History, Politics and Economics OB 3

Contact lecturer

Name :
Ivanna Marinova Ferdinandova
Email :
ivanna.ferdinandova@uab.cat

Group languages

You can consult this information at the end of the document.

Prerequisites

It is recommended that the students should have already passed the following courses:

- Introduction to Economics I

- Introduction to Economics II

Objectives

The objective of this course is to introduce students to basic economic models.
At the end of the course students should be able to create basic models, solve the mathematics of the model and interpret the economic meaning of the results obtained.

Learning outcomes

  1. Students must be capable of collecting and interpreting relevant data (usually within their area of study) in order to make statements that reflect social, scientific or ethical relevant issues.
  2. Students must have and understand knowledge of an area of study built on the basis of general secondary education, and while it relies on some advanced textbooks it also includes some aspects coming from the forefront of its field of study.
  3. Students must be capable of applying their knowledge to their work or vocation in a professional way and they should have building arguments and problem resolution skills within their area of study.
  4. Identify the economic aspects that determine demand and supply.
  5. Differentiate between different market structures and analyze their effects on sales and corporate profits and consumer welfare.
  6. Identify the constituting elements of technology and costs.
  7. Describe the determinants of economic growth and the international differences in income per capita. 
  8. Examine the effect of economic policies on macroeconomic variables.
  9. Recognise the causes of economic crises and their impact on different sectors of activity and national economies.
  10. Identify the price determiners and exchange quantities in all kinds of markets.
  11. Recognise the conditions under which public intervention in the economy is necessary.
  12. Analyse the strategic interactions between participants and the effects of their actions on third-party decisions.
  13. Apply game theory to the analysis of economic decisions.
  14. Innovate in the methods and processes of this area of knowledge in response to the needs and wishes of society.
  15. Demonstrate motivation regarding the quality of the work performed and sensitivity regarding the consequences on the society.
  16. Work as part of a team and be able to argue own proposals and validate or refuse the arguments of others in a reasonable manner.
  17. Identify the characteristics of the process of economic development and their causes and consequences.
  18. Apply descriptive and causal quantitative techniques which allow analysis of the economic and social situation.

Contents

Topic I: Basic economic models and optimization methods with and without restrictions.


Basic Assumptions


Economic Models- definition and examples


Optimization with and without constraints



Topic II: Individual decision making - models of choice



2.1 Decision Theory


Preferences and Utility Functions


Decision Making Under uncertainty


Expected value and Expected Utility


2.2 Consumer Theory


Consumer’s Problem


Demand Function


Elasticity of Demand


Aggregate Demand


2.3 Theory of the Firm


Competition


Production Function


Cost Functions


Maximization of the Benefit


Supply Curve


Elasticity of Supply


Aggregate Supply



Topic III. Models of Strategic Interaction


3.1 Partial Equilibrium


Equilibrium


Welfare analisis


Taxes, Subsidies, Price floor, price ceiling


3.3 Game Theory


Simultaneous games - representation, solution concepts and mixed strategies


Sequential Games - representation, solution concepts and efficiency


Learning activities and methodology

Title Hours ECTS Learning outcomes
Exercises and group discussion 17 0.68 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18
Study, preparation and discussion of exercies 77.5 3.1 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18
Tutorials 5 0.2 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18
Text readings 13 0.52 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18
Lectures 32.5 1.3 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18

Methodology


The teaching will be face-to-face.
The teaching material will be available in digital format in the Moodle classroom of the course.
The proposed teaching methodology may experience some modification depending on the restrictions on face-to-face attendance imposed by the health authorities.

Annotation: within the schedule set by the centre or degree programme, 15 minutes of one class will be reserved for students to evaluate their lecturers and their courses or modules through questionnaires.

Assessment

Continuous assessment activities

Title Weight Hours ECTS Learning outcomes
Final Exam 50% of the final grade 2 0.08 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18
Presentation 15% 1.5 0.06 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18
Midterm Exam 35% of the final grade 1.5 0.06 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18

Evaluation Process

The evaluation process will consist of:

1) Final exam with a weight of 50%

2) Midterm exam with a weight of 35%

3) Group presentation with a weight of 15%


The student will be considered "non-assessable" if he/she has not submitted more than 30% of the assessment activities.


Calendar of Evaluation Activities

The dates of the different assessments will be announced well in advance during the semester (during the first week of classes).

The schedule of assessments cannot be modified unless there is an exceptional and duly justified reason why an assessment cannot be carried out. In this case, the program coordinators, after consulting with the faculty and affected students, will propose a new schedule within the corresponding academic period. Section 1 of Article 115. Calendar of Assessment Activities (UAB Academic Regulations)

The teacher will choose the most suitable and efficient type of assessment for individual rescheduling, including oral exams.


Grade Review Procedure

The date and method for publishing grades will be announced at the end of each exam. Information will be provided regarding the procedure, location, date, and time for exam reviews, in accordance with University regulations.


Retake Exam

"For being eligible to attent the retake exam, the students must have been previously assessed in a set of activities that represents at least two-thirds of the total grade for the subject or module." Section 3 of Article 112 ter. Remediation (UAB Academic Regulations).

The student must have obtained an average grade for the subject between 3.5 and 4.8 to be eligible to take the retake exam.

The date of this exam will be scheduled in the Faculty's exam calendar.


Irregularities in Assessment Activities

Without prejudice to any other disciplinary measures deemed appropriate, and in accordance with current academic regulations, "if a student commits any irregularity that could lead to a significant change in the grade for an assessment activity, that assessment activity will be graded as 0, regardless of any disciplinary proceedings that may be initiated. If several irregularities occur in the assessment activities of the same subject, the final grade for that subject will be 0." Section 10 of Article 116. Assessment Results. (UAB Academic Regulations)


Rules of Conduct

Without prejudice to any other disciplinary measures deemed appropriate, and in accordance with current academic regulations, the professor may reduce the average grade obtained in "additional assessment activities" by between 1 and 2 points out of 10 for any student who repeatedly fails to respect the professor's instructions regarding rules of conduct in class. The professor will announce these rules at the beginning of the course.

The proposed assessment may be subject to modification depending on any restrictions on in-person attendance imposed by health authorities.


Use of Artificial Intelligence (AI)

This course allows the use of Artificial Intelligence (AI) technologies exclusively for tasks such as [bibliographic or information searches, text correction, or translations, at the professor's discretion].

The student must:

(i) identify the parts that were generated using AI;

(ii) specify the tools used;

(iii) include a critical reflection on how these tools influenced the process and the final result of the activity. Lack of transparency regarding the use of AI in this assessable activity will be considered academic dishonesty and will result in a grade of 0, which cannot be retaken, or more severe penalties in serious cases.


Exchange students

Exchange students requesting to take an exam early must present the professor with a written document from their home university justifying their request.


SINGLE EVALUATION (Art. 265 of the UAB Academic Regulations)

Requesting a single evaluation implies waiving continuous assessment.

The single evaluation must be requested from the Academic Management Office of the Faculty where the degree/master's program is being pursued, within the deadline and following the procedure established in the Faculty's administrative calendar.


Student attendance is mandatory on the day of the single assessment. The date will be the same as the date of the final exam, as indicated in the assessment calendar published by the Faculty and approved by the Faculty's Teaching and Academic Affairs Committee.

The duration of the single evaluation exam must be specified within the activity's characteristics.

100% of the required evidence must be submitted on the day of the single assessment.


RETAKE EXAM:

No distinction is made during the retake exam between students who have taken continuous evaluation and single evaluation assessment.


FINAL GRADE REVISION:

The final grade review follows the same procedure as for continuous assessment.


Bibliography

Hal Varian, Marc Melitz. Intermediate microeconomics: a modern approach, W.W. Norton and Company Inc., 10th edition.

Software

There is no need of any speciffic software.

Course groups and languages

The information provided is provisional until November 30. After this date, you will be able to consult the language of each group through this link. To access the information, you will need to enter the course CODE

Type of teaching Group Language Semester Shift
(TE) Theory 50 English second semester afternoon
(PAUL) Classroom practices 50 English second semester afternoon