28873 - Microeconomics 1

Learning outcomes

At the end of the class, the student has a working knowledge of the basic tools and results of the classical microeconomic theory for perfectly competitive environments. In particular, the class focuses on: - Classical consumer theory: utility maximization and expenditure minimization. - Choice under uncertainty and insurance decisions. - Production theory, profit maximization and cost functions. - Welfare analysis of perfectly competitive markets.

Course contents

Individual decision making: consumer, producer, uncertainty

1. Preference, choice (MWG 1.A to 1.D; R 1, 3, 5, 6)

2. Classical demand theory (MWG 3.A to 3.E, 3.G and 3.I; JR 1-2; R 2, 4, 5, 6)

3. Production (MWG 5.A to 5.D; JR 3; R 6)

4. Uncertainty (MWG 6.A to 6.C; JR 2.4; R 7, 8)

Market equilibrium and welfare

5. Competitive equilibrium in an exchange economy (MWG 15.A, 15.B)

6. General equilibrium and welfare (MWG 16.A to 16.D; JR 5)

7. Equilibrium existence, with hints to uniqueness, stability and partial equilibrium (MWG 17.A to 17.C and 17.Appendix B)

Readings/Bibliography

Main textbook

Mas-Colell, A., M. Whinston and J. Green, Microeconomic Theory. Oxford University Press, Oxford, 1995. (MWG)

Other books

- Jehle, J A and P J Reny, Advanced Microeconomic Theory (3rd ed.). Pearson, Essex, 2011. (JR)

- Rubinstein, A. Lecture Notes in Microeconomic Theory (2nd ed.). Princeton NJ: Princeton University Press 2012 [2019 revision downloadable here [http://arielrubinstein.tau.ac.il/micro1] ]. (R)

- Muñoz-Garcia, F., Advanced Microeconomic Theory. An Intuitive Approach with Examples. Cambridge, MA: MIT Press, 2017. (MG)

Other references may be provided during classes.

Teaching methods

Lectures, tutorials, and home assignments.

Assessment methods

Home assignments (30% of final grade)

Home assignments will contain both theoretical questions (such as propositions that students may be asked to prove) and exercises. Home assignments may be handed in individually or in groups of at most four students.

Final exam (70% of final grade)

The final exam will last 2 hours, will be "open book" and will also contain both theoretical questions and exercises. Its grade can be rejected at most once.

The evaluation depends on the correctness, completeness and rigor of the answers.

Final grade

The final grade in Microeconomics 1 will be the weighted average of the grades in home assignments and the final exam.

The final grade in Microeconomics (I.C.) is the simple average of those in Microeconomics 1 and 2.

Grading scale

< 18: failed
18-23: sufficient
24-27: good
28-30: very good
30 e lode: outstanding

Teaching tools

Slides will be made available online in advance on the course's VIRTUALE platform.

Students with disability or specific learning disabilities (DSA) are required to make their condition known to find the best possibile accommodation to their needs.

Office hours

See the website of Paolo Vanin