EET 400 Microeconomics Theory IV Notes

Microeconomics Theory

COURSE OUTLINE

  1. COMPETITIVE MARKETS

Competitive firm

Profit maximization problem

Industry supply function

Welfare analysis

Discrete good model

  1. MONOPOLY

Special cases

Comparative statics

Welfare and output

Quality choice

Price discrimination

  1. GAME THEORY

Description of a game

Economic modeling of strategic choices

Repeated games

Sequential games

Bayes- Nash equilibrium

  1. OLIGOPOLY

Cournot equilibrium Comparative statics

Bertrand equilibrium

Classification and choice of models

Conjectural variations

Limit pricing

  1. EXCHANGE

Agents and goods

Walrasian equilibrium

Existence of Walrasian equilibrium

Theorems of welfare economics

Pareto efficiency and calculus

  1. TIME

Intertemporal preferences

Intertemporal optimization with two periods

Intertemporal optimization with several periods

  1. PUBLIC GOODS

Efficient provision of a discrete public good

Private provision of a discrete public good

Voting for a discrete public good

Efficient provision of a continuous public good

Demand revealing mechanisms

  1. EXTERNALITIES

 An example of a production externality

Solution to the externalities problem

The compensation mechanism

Efficiency conditions in the presence of externalities

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