Microeconomics 1000-135MIE
1. Introduction to microeconomics
2. Mathematical tools used in microeconomic theory:
- constrained optimization
- correspondences
- fixed point
3. General choice theory
- preferences and utility
- choice structures
- WARP and equivalence
4. Consumer's choice
- assumptions
- basic functions and correspondences
- their properties
- analysis of demand, Slutsky equation
- comparative statics
5. Producer's choice
- assumptions
- basic functions and correspondences
- their properties
- short and long run for a producer
- comparative statics
6. Partial equilibrium
- market supply and demand
- equilibrium
- very short, short, medium and long run for the market
- taxation, restrictions and subsidies
7. Monopoly
- the optimization of a monopolist
- equivalent expressions for the optimum
- taxation
8. General equilibrium
- pure exchange economy
- welfare theorems and Pareto optimality
- Edgeworth box
- equilibrium
- Arrow-Debreu model
- existence of equilibrium
9. Choice under uncertainty
- preferences over lotteries and von Neumann-Morgenstern theorem
- comparing preferences
- attitude to risk
- stochastic dominance
Type of course
Course coordinators
Learning outcomes
Knowledge and skills:
Students know what is the subject of microeconomics. They can use tools of optimization, multivalued corespondeces and fixed points.
Students know general theory of choice
Students know consumer choice problem and can calculate functions and correspondences and know their basic properties.
Students know producer choice problem and can calculate functions and correspondences and know their basic properties.
Students know basic market structures: perfect competition and monopoly, they can calculate partial equilibria and solve monopolist optimization problem, including discrimination and results of interventions.
Students know general equilibrium models
Students have basic knowledge about decision making under uncertainty.
Assessment criteria
final exam
Bibliography
G.A. Jehle, P.J.Reny, Advanced Microeconomic Theory. Addison Wesley, 2001.
A. Mass-Colell, M. Whinston, J. Creen, Microeconomic Theory. Oxford University Press, Oxford 1995.
H.R. Varian, Microeconomic Analysis. W. W. Norton and Company, 1992.
Additional information
Information on level of this course, year of study and semester when the course unit is delivered, types and amount of class hours - can be found in course structure diagrams of apropriate study programmes. This course is related to the following study programmes:
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