Instructor: Santanu Roy University Distinguished Professor
301-NA, Umphrey Lee
Tel: 214 768 2714
Fax: 214 768 1821
Monday and Wednesday, 10.30 AM – 12 noon & by appointment.
Tuesday and Thursday, 9.30 – 11.00 AM,
Umphrey Lee 301-S.
This is the first of two-courses in core microeconomic theory for first year Ph.D. students in Economics. The aim of the course is to train students in the art of theoretical reasoning, and to expose them to fundamental techniques and concepts in modern microeconomic theory. In particular, this course will focus on topics related to choice and individual optimization by consumers and firms, decision making under uncertainty, basic game theory, market structures and elements of partial and general equilibrium analysis.
Teaching Assistant: Jisub Shin E-mail: firstname.lastname@example.org
Microeconomic Theory by Andreu Mas-Colell, Michael D. Whinston and Jerry R.Green, Oxford University Press, 1995.
List of Topics:
1. Preferences, Utility and Consumer Choice, Demand Functions and Comparative Statics, Weak Axiom of Revealed Preferences, Classical Demand Theory: Preferences and Utility, Utility Maximization, Expenditure Minimization, Welfare Evaluation of Economic Changes.
2. Production Theory: Technology & Production Sets, Profit Maximization and Cost Minimization.
3. Choice under Uncertainty: Expected Utility Theory; Money Lotteries and Risk Aversion; Measures of Risk Aversion; First and Second Order Stochastic Dominance.
4. Competitive Markets & Partial Equilibrium: Pareto optimality; Partial Equilibrium Analysis; Welfare analysis; Efficiency of competitive markets; deadweight loss; Free entry and long run equilibrium..
5. Introduction to Game Theory: Static and Dynamic Games of Complete Information: Nash Equilibrium and Subgame Perfection.
6. Market Power: Monopoly & welfare loss; Price Discrimination, Two-part tariff; Static oligopoly: Bertrand, Cournot, capacity constraints & product differentiation; Entry; Repeated interaction and collusion.
7. General Equilibrium, Fundamental Welfare Theorems, Conditions for Pareto Optimality, Welfare maximization, Private Ownership Economy: Equilibrium & Existence.
Problem Set 1 (due Sep 5)
Problem Set 2 (due Sep 19)
Problem Set 3 (due Sep 28)
Problem Set 4 (due October 26)
Problem Set 5 (due November 9)
Problem Set 6 (due November 28)