ECON 20100: Elements of Economic Analysis II
Lecture Notes:
01/03/12: Introduction and Review of Consumer Theory
01/05/12: Introduction to Firm Theory
01/12/12: The Long and The Short Run
01/17/12: Exchange and Production Economies
01/19/12: Intervention and Shocks to Economies
01/24/12: General Equilibrium in Production Economies
01/26/12: Equilibrium and Welfare
01/31/12: Externalities and Public Goods
02/02/12: Addressing Externalities
02/14/12: Strategic Interaction
02/16/12: The Cournot Model of Oligopoly
02/23/12: Price Competition and Differentiated Products
02/28/12: Asymmetric Information and the Lemons Market
03/01/12: Price Discrimination and Screening Contracts
Reading:
The recommended textbook for this class is Hal Varian's Intermediate Microeconomics, and the material we cover will roughly correspond to Chapters 18 to 37. The first two weeks (up to Jan. 12) correspond to Chapters 18-22 of Varian. Weeks three and four (Jan. 17 - Jan. 26) correspond to Chapters 31 and 32, but as we also cover material which Varian does not cover Victor Lima's lecture notes will be made available from the Social Sciences copy center (on first floor of 1126 E. 59th Street). In week 5 (Jan. 31 and Feb. 2) we address Chapters 34 and 36 of Varian, as well Ronald Coases's seminal article on externalities available here.
After the midterm (Feb. 9) we learn about monopoly (chapter 24 and 25 of Varian) then move on to basic game theory (chapter 28 and 29) on Feb. 14. An interesting paper on the empirical relevance of game theory is available here. From Feb. 16-23 we apply game theory to study oligopoly (chapter 27), as well as in the oligopoly chapter of Victor Lima's notes. The last three classes (Feb. 28-Mar. 6) deal with asymmetric information, something Varian addresses in Chapter 37. In addition, a seminal paper on the role of information in economics, Akerlof's ``Lemons'' model is available here. Furthermore, preliminary notes from Victor Lima on asymmetric information and Insurance will be distributed in class.
Problem Sets:
pset1 (due Jan. 9, 2012)
pset2 (due Jan. 19, 2012)
pset3 (due Jan. 26, 2012)
pset4 (due Feb. 2, 2012)
pset5 (due Feb. 16, 2012)
pset6 (due Feb. 23, 2012)
pset7 (due March 1, 2012)
pset8 (due March 8, 2012)
Exams:
Practice Midterm and answers.
Midterm with Solutions (TR 9:00-10:20)
Midterm with Solutions (TR 10:30-11:50)
Practice Final and answers.
Final Exam