Advanced Microeconomics I

This course covers advanced microeconomic models, starting with the notions of preferences. Students will be taught the necessary tools to understand advance economic models. They will become familiar with advanced notions and models of individual choice, as well as the decision problems of firms. Students will learn both about the partial analysis of isolated markets, and the general equilibrium analysis. Emphasis will be made not only on the mathematical formulation of the problems, but also on the related economic meaning (and intuition).

A detailed list of the topics addressed is as follows:

1. Consumer theory: Notions; Preferences and utility; The consumer's problem; Indirect utility and expenditure; Consumer demand
2. Topics in Consumer theory: e.g. Revealed preferences; Uncertainty
3. Theory of the firm: Notions; Production; Cost; Duality in production; The competitive firm
4. Partial equilibrium: Perfect competition; Imperfect competition; Equilibrium and welfare
5. General equilibrium: Equilibrium in exchange; Equilibrium in competitive markets; Equilibrium in production; Core and equilibria

• Provide students with a solid foundation in microeconomic theory, using mathematical techniques.
• Provide students with a deeper knowledge in the neo-classical theory of consumers and firms.
• Provide students with a deeper knowledge in topics related to general equilibrium, and introduction to decisions under uncertainty.
• This course is required for students aiming at deepening their knowledge in Microeconomics, with an aim to pursue a career as economists in firms or organizations, or in a PhD program.

Thu., 12:15 - 1:45pm

HS 3044

• Strong command of intermediate microeconomics. The following texts are suitable for preparation: M. J. Osborne and A. Rubinstein: Models in Microeconomic Theory, Open Book Publishers, 2020 (electronic version freely available on the publisher’s website), and H. Varian: Intermediate Microeconomics: A Modern Approach, W.W. Norton and Co., 2010, 8^th edition.
• Strong notions in mathematics

• Main text: Jehle, G.A., and Reny, P.J., Advanced Microeconomic Theory, 2011, 3rd edition, Pearson. Focus on Chapters 1-5.
• Other texts:
  • Mas-Collel, A., Whinston, M.D., Green, J., Microeconomic Theory, 1995, Oxford University Press.
  • Rubinstein, A., Lecture Notes in Microeconomic Theory, 2016, Princeton U. Press. (Freely available on the author's website). Relevant in particular for topics 1-3 above.
  • Kreps, D.M., Microeconomic Foundations I: Choice and Competitive Markets, 2012, Princeton University Press.
  • H. R. Varian, Microeconomic Analysis, 1992, W. W. Norton & Company, 3rd ed.

Available soon on the ILIAS course page

Password: AMI-2024

Wed., 12:15 - 1:45 pm