Syllabus – Microeconomics

Leopold Sögner, Masaryk University, Brno, winter-term 2014


Title: Microeconomics

Lecturer: Leopold Sögner


Semester: Fall 2010

·               First block: November 6-7; 2014

·               Second block: November 20-21, 2014.

·               Third block: December 11-12, 2014.


Contact hours (per semester): 12 units à 90 minutes

Prerequisites: Knowledge of constrained optimization

Learning objectives:

This micro course covers key concepts of microeconomic theory on a PhD level. In this course
students acquire a basic understanding of microeconomic concepts. In addition the students get
familiar with the analytical tools used in microeconomics.

Content:

1.    Decision theory and the theory of the consumer.

·        Rationality, preference primitives and axioms, preference representations and utility (GR
2A-B).

·        Utility maximization, Walrasian demand and comparative statics (GR 2C-D).

·         Indirect utility, expenditure function, Hicksian demand (GR 3A).

·        Slutsky equation, substitution and wealth effect (GR 3B).

2.    Production and cost.

·        Production functions, returns to scale (GR 5).

·        Cost minimization, conditional factor demands, cost function (GR 6.A,B,E).

·        Profit maximization, input demands, profit function (GR 7.A,C,D).

3.    General Equilibrium

·        Introduction, Walrasian equilibrium (GR 12.A-D).

·        The Edgeworth box (GR 12.E).

·        Welfare theorems (GR 13).

4.    Decisions under uncertainty:

·        Expected utility theorem, risk aversion (GR 17 A-D)


Language of instruction: English


Literature:

Gravelle, H. Ress, R., Microeconomics, 3^rd edition, Pearson education Ldt., Essex, 2004.

Additional literature:

Mas-Colell, A., Whinston, M.D., Greem, J.R., Microeconomic Theory, Oxford University Press 1995.
Chapter 1-6.

Jehle G.A. and P. J. Reny, Advanced Microeconomic Theory, Addison-Wesley Series in Economics,
Longman, Amsterdam, 2000. Chapters 1-4.

Gilboa, I., Theroy of Decision under Uncertainty, Cambridge University Press, 2009.


Mode of examination: Final test, tba. class participation.


Grading: max. 20% in the practice session:. 80% for the final.


Contact information: Leopold Sögner, Department of Economics and Finance, Institute for Advanced
Studies, Stumpergasse 56, A-1060 Vienna.

Phone: ++43 1 59991 182, E-mail: soegner@ihs.ac.at