Syllabus – Microeconomics

Leopold Sögner, Masaryk University, Brno, winter-term 2015


Title: Microeconomics

Lecturer: Leopold Sögner


Semester: Fall 2015

·               First block: October 20-21; 2016

·               Second block: November 10-11, 2016.

·               Third block: December 15-16, 2016.


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 (MWG
1-3, GR 2A-B).

·       Utility maximization, Walrasian demand and comparative statics (MWG, 2, 3D, GR 2C-D).

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

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

2.    Production and cost.

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

·       Production set (MWG 5 B)

·       Cost minimization, conditional factor demands, cost function (MWG 5 C, GR 6.A,B,E).

·       Profit maximization, input demands, profit function, objectives of the firm (MWG 5 C,G, GR
7.A,C,D).





3.    General Equilibrium

·       Introduction, Walrasian equilibrium (MWG 15, GR 12.A-D).

·       The Edgeworth box (MWG 15B, GR 12.E).

·       Welfare theorems (MWG16 A-D, GR 13).

4.    Decisions under uncertainty:

·       Expected utility theorem, risk aversion (MWG 6A-C,GR 17 A-D)


Language of instruction: English


Literature:

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

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

Additional literature:

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

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


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


Grading: 20% homeworks; 80% for the final.


Contact information: Leopold Sögner, Department of Economics and Finance, Institute for Advanced
Studies, Josefstädter Straße 39, 1080 Vienna.

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