This course is designed to provide the foundational tools and theory of microeconomic analysis, presented at a graduate level.
In the first half of the course, we will begin with consumer theory including utility theory, consumer demand, properties of demand systems, income and substitution effects, etc. We will then cover producer theory including profit maximization, cost functions, supply curves, and derived factor demand. We will then combine consumer and producer theory in the context of competitive markets and monopoly.
In the second half of the course, we will consider situations where strategic interactions are of central importance. Game theory is the primary tool that economists use for understanding strategic interactions. After covering the essentials of game theory, we will consider several applications of game theory in different economic settings. After covering a few more advanced topics in pricing, we will discuss decision-making under uncertainty. Finally, we will introduce general equilibrium theory. Prerequisite: Admission to the A.M. program in Economics or instructor permission.