Microeconomic Theory

ECON60101 Microeconomic Theory 15 Semester 1 Postgraduate Taught Level 6 Alejamdro Saporiti Unit coordinator Economics 1 FHEQ level (Framework for Higher Education Qualifications) ' Masters/Integrated Masters P4 ' European Credit Transfer & Accumulation System Rating : 7.5 The aim of this course is to provide a formal (mathematical) introduction to some of the main principles and ideas of modern microeconomic analysis. The aim of this course is to provide a formal (mathematical) introduction to some of the main principles and ideas of modern microeconomic analysis. The aim of this course is to provide a formal (mathematical) introduction to some of the main principles and ideas of modern microeconomic analysis. At the end of this course, students should be able to demonstrate a graduate-levelunderstanding of the main microeconomic concepts covered during the term, as well as the tools and the modelling techniques used to represent economic behaviour. The students should also be aware of how and when to apply the various existing models, as well as the main limitations of them. ProvisionalDuring the semester, lectures will focus on the following topics: 1. Consumer Theory: utility maximization; first order conditions; Walrasian (Marshallian) demands; expenditure minimization; first order conditions; Hicksian demands; Slutsky equation; substitution (income) effect; normal (inferior) good; demand slope (response to price change). Recommended Readings: Jehle, G., Reny, P. Advanced Microeconomic Theory. Pearson 3rd ed. (2011), Ch. 1 & 2. Mas-Collel, A., Whinston, M., Green, J. Microeconomic Theory. Oxford Univ. Press (1995), Ch. 3. 2. Producer Theory: cost minimization; first order conditions; conditional input demands; competitive firm; profit maximization; first (second) order condition; output supply function; unconditional input demands; demand (supply) slopes (response to price change). Recommended Readings: Jehle, G., Reny, P. Advanced Microeconomic Theory. Pearson 3rd ed. (2011), Ch. 3. Mas-Collel et al. Microeconomic Theory. Oxford Univ. Press (1995), Ch. 5. 3. General Equilibrium: exchange economy; feasible allocation; Edgeworth box; Pareto efficiency; Contract curve; core; market system; Walrasian (competitive) equilibrium; Walras’ law; offer curve; equilibrium existence; excess demand; properties of the excess demand; uniqueness; first welfare theorem; second welfare theorem; production possibility set; Walrasian equilibrium with production; existence with production; Pareto efficiency with production; first and second welfare theorems with production. Recommended Readings: Jehle, G., Reny, P. Advanced Microeconomic Theory. Pearson 3rd ed. (2011), Ch. 5. Mas-Collel et al. Microeconomic Theory. Oxford Univ. Press (1995), Ch. 16 & 17. 4. Social Choice: majority rule; Condorcet’s paradox; social welfare function; Arrow’s conditions (unrestricted domain, transitivity, IIA, weakly Paretian, no dictatorship); Arrow’s impossibility theorem; single-peakedness; Black’s theorem; median voter theorem; Pareto indifference principle; strict welfarism; anonymity; Hammond equity; Ralws’ maxmin principle; utilitarian principle; social choice function; dictatorship; strategy-proofness; Gibbard-Satterthwaite theorem. Recommended Readings: Jehle, G., Reny, P. Advanced Microeconomic Theory. Pearson 3rd ed. (2011), Ch. 6. Mas-Collel, A., Whinston, M., Green, J. Microeconomic Theory. Oxford Univ. Press (1995), Ch. 21.   Lectures and Tutorials 0 Other 15% 1 Written exam 85% 85% final exam15% midterm test Pre requisite: Registered on MSc Economics and MSc Economics and Data Science MSc Economics MSc Economics PGDT Taught Component Mandatory N  Jehle, G., Reny, P. Advanced Microeconomic Theory. Pearson 3rd ed. (2011).  Mas-Collel, A., Whinston, M., Green, J. Microeconomic Theory. Oxford Univ. Press (1995). Lectures 20 Tutorials 5 0 125