1. Individual decision making: An introduction
Market economies: commodities and prices
2. Consumer choice theory
Preferences and utility
Utility maximization and expenditure minimization
3. Demand theory
Individual demand functions: Walrasian and Hicksian
The Slutsky equation: wealth and substitution effects
4. Producer choice theory
Technology: production sets, transformation functions, production functions
Profit maximization and cost minimization
5. Supply theory
Individual supply functions
Cost and supply in the single-output case
6. Competitive equilibrium and Pareto optimality: An introduction
7. General equilibrium theory: some examples
The Edgeworth Box economy
The Robinson Crusoe economy
8. General equilibrium of a market economy with excess demand functions
9. General equilibrium theory and welfare economics
The two Fundamental Theorems of Welfare Economics
Pareto optimality and social welfare optima
First-order conditions for Pareto-optimality
10. Existence of an equilibrium for a competitive economy
Price and product choices
Basic competitive models
Competition and collusion
13. Non-price competition
14. Entry models
Prerequisiti e modalità di esame
The students are expected to fully master the topics dealt with in the course Mathematics for Economics (6 credits), i.e., linear algebra, intermediate calculus, and an introduction to static optimization. A reasonable acquaintance with introductory and intermediate microeconomics (consumer and producer theory, partial competitive equilibrium theory) is expected.
Three problem sets will be handed out and marked. Students will be required to hand in the solutions to each problem set in the week immediately following its distribution. The overall assessment will be based on the successful solution of all the problem sets (30% of the final grade) and a written final examination (70% of the final grade).
Materiale didattico e bibliografia
Mas-Colell A., M.D. Whinston and J.R. Green, Microeconomic Theory, Oxford University Press, Oxford, 1995. Chapters 1.A-B, 2, 3.A-E and G, 4.A-B, 5, 10.A-B, 15.A-D, 16.A-F, 17.A-C; Mathematical Appendix: M.A-M.F., M.J-M.L.
Varian Hal. R., Microeconomic Analysis, Third Edition, W. W. Norton & Company, New York - London, 1992. Chapters 1-5, 7-9, 13, 17-18.
Tirole J., The Theory of Industrial Organization, MIT Press, Cambridge, Mass., 1988. Chapters 1-3, 5-9.