Microeconomic Theory I-1: Optimization, Consumer Choice and Uncertainty (個體經濟理論一：最佳化、消費者決策與風險部分)

NTU (Fall 2019)

Time: Tuesday, 4:30-6:20pm, and Wednesday, 1:20-4:20pm, at Social Science Building 502

TA: 王昱翔 (r07323023 "at" ntu.edu.tw)

Office Hour: Friday 12:10-1pm (after Principles class at Liberal Education 103) or by Email appointment

Course Syllabus

Textbooks and References:

• Textbook 1:   John G. Riley (2012), Essential Microeconomics, Cambridge University Press. (EM)

• Textbook 2:   Simon and Blume (1994), Mathematics for Economists, W. W. Norton. (SB)

• Reference 1:  Mas-Colell, Whinston and Green (1995), Microeconomic Theory, Oxford University Press. (MWG)

• Reference 2:  Rubinstein (2019), Lecture Notes in Microeconomic Theory, Princeton University Press, 2nd ed. (R)

[Part 2 taught by Professor Pohan Fong]

Class Topics:

1a. [ 9 /10] Supporting Prices (EM 1.1) - Homework 1
                    Notes on Concavity and Quasi-Concavity (EM A.5, B.2)

1b. [ 9 /11] Shadow Prices (EM 1.2, 1.5; SB 18.6, 19.1); Envelope Theorem (EM 1.3; SB 19.2) - Homework 2
                    Kuhn-Tucker Conditions for Calculus 4

 2.  [ 9 /17] Theory of Choice (EM 2.1)- Homework 3

 •   [ 9 /18] Quiz 1 and TA session

 •   [ 9 /24] Quiz 2 and TA session

 3.  [ 9 /25] Budget Constrained Consumer Choice with 2 Commodities (EM 2.2, SB 22.1)
                    Budget Constrained Consumer Choice with n Commodities (EM 2.3, SB 22.1)
                    See CES example in page 4 of this Calculus 4 worksheet.

 •   [10/ 1 ] Quiz 3 and TA session

 4.  [10/ 2 ] The 2x2 Exchange Economy (old) (EM, 3.1) and The Fundamental Welfare Theorems (old) (EM, 3.2)
                    (Optional) Edgeworth Box Bargaining Experiments (old) (Sunder)

 •   [10/ 8 ] Quiz 4 and TA session

 5.  [10/ 9 ] Theory of Risky Choices (old) (EM, 7.1)

 •   [10/15] Quiz 5 and TA session

 6.  [10/16] Attitude toward Risk (old) (EM 7.2) and Principal-Agent Problem: Hidden Action (old) (EM 7.4; MWG)
                    (Optional) Risk and Time Preference Experiments

 •   [10/22] Quiz 6 and TA session

 7.  [10/23] Arrow-Debreu Equilibrium (EM 8.1) and Prediction Markets (old) (Holt, Ch.34)

 •   [10/29] Quiz 7 and TA session

 8.  [10/30] Security Market Equilibrium (EM 8.2)

 •   [11/ 5 ] TA review session

 •   [11/ 6 ] Midterm Exam (on Optimization, Consumer Decision and Uncertainty)
               Past Finals (for my part): 14F, 13F, 12F, 10F, 09F, 08F
               Past Midterms/Quizzes: 14F, 13F, 09F (09F_sample), 08F

[Part 2 taught by Professor Pohan Fong]