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Economics
501 - Microeconomic Theory, Fall 2007
MWF 9:00 - 10:15 AM, BB 271
Instructor: Simon Grant, BB 252, 713-348-3332
E-mail:
sgrant@rice.edu
Office Hours: Mon 1:00 - 3:00 pm |
TABLE OF CONTENTS
GENERAL COURSE INFORMATION
Text:
Microeconomic Theory by Andreu Mas-Colell, Michael
D. Whinston and Jerry R. Green, Oxford Press, 1995.
Other Useful Texts:
Economics and Consumer Behaviour by Angus Deaton
and John Muellbauer, Cambridge University Press, 1980.
Microeconomics by H. Gravelle and R. Rees, Longman, 2nd edition,
1992.
A Course in Microeconomic Theory by David M. Kreps, Harvester
Wheatsheaf, 1990.
Microeconomic Analysis by Hal R. Varian, 3rd edition, W.
W. Norton & Co., 1992.
Special Needs:
Any student with a disability that needs academic adjustments or accommodations
is encouraged to speak with me after class or during office hours.
All discussions will remain confidential. Students with disabilities
should also contact Disabled Student Services in the Ley Student Center.
ASSESSMENT
There will be (almost) weekly problem sets, a mid-term exam (scheduled
for Friday, November 9 ) and a final exam (scheduled Monday, December 10, 9am-12noon). The problem sets will only count at the margin towards the final
grade. The contributions of the mid-term and final exams toward the
final grade will be:
COURSE DESCRIPTION
T he purpose of this course is to develop a sound understanding
of the basic tools of microeconomic analysis. We progress from the study
of the optimizing behaviour of individual actors (both consumers and
producers) in an economic setting, to a study of the interaction of
these agents in one market (partial equilibrium analysis). The following
semester you will then consider the determination of prices and the
allocation of resources and goods in the economy as a whole (general
equilibrium analysis).
LIST OF TOPICS AND READINGS
The following is a brief outline of the topics that will be covered.
The relevant readings (that is, chapter and section) from the textbook
are given in brackets at the end of each subtopic. You will get more
from the lectures if you do the required reading for each topic before
the class in which that topic will be covered.
1. Consumer Theory and Demand (4 weeks)
- axiomatic description of consumer preferences (1.B, 2.A-2.C,
3.A-3.C)
- utility maximization and properties of demand functions (2.D,
3.D)
- duality theory: expenditure and indirect utility functions (3.E-3.G)
- integrability and revealed preference theory (2.E, 2.F, 3.H, &
3.J)
- evaluation of economic change (3.I)
- aggregation of commodities (DM Chap. 5) and aggegration of demand (4)
2. Choice under Uncertainty (2 weeks)
- state contingent choice (6.E, 6.F)
- (Subjective) Expected Utility Theory (6.A, 6.B)
- measures of risk and rsk aversion (6.C, 6.D)
3. Production and Cost (1 weeks)
- production sets and production functions (5.A, 5.B)
- profit maximisation and cost minimisation (5.C)
- duality theory: profit and cost functions
- aggregation of supply (5.E)
- efficient production (5.F)
- price-taking and profit maximisation (5.G)
4. Partial Equilibrium Analysis (2 week)
- perfect competition (10)
- monopoly and duopoly (12.A-12.C)
- Externalities and public goods (11)
PROBLEM SETS AND LECTURE SLIDES
To download PDF documents containing the problem sets and lecture slides
for the course, click on the appropriate link in the two tables below.
IF YOU WANT THE LATEST VERSION OF ACROBAT READER CLICK HERE.
Professor Simon Grant
Last modified by Simon Grant ( sgrant@rice.edu):
January 17, 2008
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