Microeconomic Theory I
ECO 6384
Fall, 2024
Instructor: Santanu Roy Robert H. and Nancy Dedman Professor of
Economics, University Distinguished Professor
Office:
301-NA, Umphrey Lee
Tel:
214 768 2714
E-mail:
sroy@smu.edu
Office Hours: Monday and Wednesday, 10.30 AM – 12 noon (& by
appointment).
Lectures: Tuesday and Thursday, 11:00 – 12:20; Umphrey
Lee 301-S
Objective:
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: Ishan Azad (E-mail: iazad@smu.edu)
Textbook:
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.
L
Lecture Notes:
PROBLEM SETS