January 15 Course Introduction
PART I: Language and Mathematics Review
January 20 Set and Logic
Readings: Lecture 1 (Section 1 and 2), Supplement on Logic
Additional Readings: [O] A.1, [D] 1.1, 1.2, [JR] A1.2
January 22 Logic (continued) and Linearity:
Readings: Supplement on Logic, Lecture 2 (Section 1.1, Section 2.1)
Additional Readings: [JR] A1.1, [SB] Chapter 6,8,10,11; [O] Chapter F
Mandatory Assignment A (Due on February 12, Optional Submission)
January 27 - February 3 No meeting
February 5 Linearity (continued)
Readings: Lecture 2 (Section 1.1, Section 2.1)
Additional Readings: [SB] Chapter 6,8,10,11; [O] Chapter F
February 10 Linear Independence, Matrix Operations, and Linear Programming
Readings: Supplement on dot product and Linear Programming, Lectures 2
Additional Readings: [SB] Chapter 6,8,10,11, 21; [O] Chapter F, A.4, G, [K] Appendix 3, [JR] A1.4
February 12 Differentiation and Optimization with No Constraints
Readings: Lectures 5 (Section 1), Lecture 6 (Section 1)
Additional Readings: [JR] A2.1, [SB] Chapters 2-5, 14, 16, [JR] A2.2-A2.4, [SB] Chapters 17-19, [K] Appendix 5
Mandatory Assignment B (Due on February 26, Optional Submission)
February 17 Multivariate Differentiation and Optimization with Equality Constraints
Readings: Lectures 5 (Section 2.1-2.3), Lecture 6 (Section 2.1)
Additional Readings: [JR] A2.1, [SB] Chapters 2-5, 14, 16, [JR] A2.2-A2.4, [SB] Chapters 17-19, [K] Appendix 5
February 19 Constraint Qualification and Convexity
Readings: Lecture 2 (Section 2.2), Lectures 5 (Section 2.4), Lecture 6 (Section 2.1)
Additional Readings: [JR] A2.1, [SB] Chapters 2-5, 14, 16, [JR] A2.2-A2.4, [SB] Chapters 17-19, [K] Appendix 5
February 24 Convex Optimization with Inequality Constraints
Readings: Lecture 6 (Section 2.2)
Additional Readings: [JR] A2.2-A2.4, [SB] Chapters 17-19, [K] Appendix 5
PART II: Consumer Theory
February 26 Consumer's Problem
Readings: Lecture 7 (Section 1, 2.1, 2.2)
Additional Readings: [D] Ch 2,4 [B] Ch 6 [JR] 1.1-1.3, 1.5 [K] Ch 3 [OR] 5.1-5.3
Assignment 1 (Due on March 17)
March 3 Envelope Theorem and Utility Maximization
Readings: Lecture 6 (Section 2.3), Lecture 7 (Section 2.3 and 3), Lecture 8 (Section 1, 2)
Additional Readings: [D] Ch 2,4 [B] Ch 6 [JR] 1.1-1.3, 1.5 [K] Ch 3 [OR] 5.1-5.3
March 5 Economic Modelling
Modeling of a decision maker
Are agents rational?
Why do we have assumptions?
Are we modelling the decision process of the agents?
March 10 Cost Minimization and Comparative Statics
Readings: Lecture 8, 9
Additional Readings: [JR] 1.5, 2.1 [K] Ch 10, 11, [OR] 5.6
March 12 Comparative Statics and Welfare
Readings: Lecture 9, 10
Additional Readings: [JR] 4.3, [K] 12.2
PART III: Choice And Revealed Preference
March 17 Preference and Utility Presentation
Readings: Lecture 1, Lecture 12
Additional Readings: [JR] Ch 3, [K] Ch 9, [OR] Ch 6
March 19 Preference and Utility Presentation
Readings: Lecture 12
Additional Readings: [JR] Ch 3, [K] Ch 9, [OR] Ch 6
March 24 Choice and Revealed Preference
Readings: Lecture 13
Additional Readings: [D] 4.4-4.7, [JR] 1.2, [K] Ch 1 - 2, [OR] Ch 1,4
PART IV: Choice Under Uncertainties
March 26 Uncertainty and Expected Utility
Readings: Lecture 14
Additional Readings: [K] Ch 5, [JR] 2.4, [OR] 3.1-3.4, [O] H.1
March 31-April 2 Spring Break
April 7 Uncertainty and Expected Utility
Readings: Lecture 14
Additional Readings: [K] Ch 5, [JR] 2.4, [OR] 3.1-3.4, [O] H.1
April 9 Expected Utility
Readings: Lecture 14
Additional Readings: [K] Ch 5, [JR] 2.4, [OR] 3.1-3.4, [O] H.1
Assignment 3 (Due on April 23)
April 14 Attitude towards Risk
Readings: Lecture 15
Additional Readings: [JR] 2.4, [OR] 3.5
PART V: Topics
April 16 Topics
Sophisticated or Naïve: individuals dilemma (Carlos Manuel Diaz Cantu)
Supporting the Underdog: Risk prone behavior and minimizing the downside risk (Emilio Arturo Sanchez Gonzalez)
April 21 Topics
April 23 Topics
Insurance Choice Under Uncertainty : Protection and Prevention (Gala Renata Hernandez Garcia)
Self control: Decision making with inconsistent preferences (Luciana Quintana Ortiz Monasterio)
Why investors miss out: the narrow framing effect (Jose Miguel Garcia Hernandez)
April 28 Topics
Optimal sentence design based on wealth in property crimess (Diana Elizabeth Trujillo Baeza)
The Cost of Options: Regret Aversion in Individual Decision Making (Martina Perez Saiz)
April 30 Topics
Optimal Decision: Making under Costly Information (Carlos Eduardo Tenorio Jimenez)
How should income be redistributed? (Sebastian Tadeo Larrondo Ortega)
Optimal Regulation under Asymmetric Information (Bernardo Gonzalez)
Who decides what's best? Government decision making (Lucia Ramirez Gasca)
May 5 Topics
Optimal search strategy when facing uncertain rewards (Graciela Victoria Martinez Jimenez)
Corruption: an optimal response under good governments (Yahir Mondragon Carrillo)
The relationship between self-control and the poverty trap (Mauricio Garcia Moreno)
Temptation: Another way of making decisions (Jose Cristobal Pons Gibbon)
May 7 Topics
Optimal Portfolio Choice with Uncertainty Aversion (Diego Alonso Barocio Xochipa)
Decision making with limited consideration (Vanessa Acosta Rubio)
May 12 Topics
Additional Reference:
For consumer and producer theory:
[K] David M. Kreps, Microeconomic Foundations I: Choice and Competitive Markets (Princeton University Press, 2013)
[OB] Osobrne, M. and Rubinstein, A., Models in Microeconomic Theory (Open Book Publishers, 2020)
[JR] Geoffrey A. Jehle and Philip J. Reny, Advanced Microeconomic Theory (3rd edition, Prentice Hall, 2011)
For mathematics:
[O] Efe OK, Real Analysis with Economic Applications (Princeton University Press, 2007)
[SB] Carl Simon and Lawrence Blume, Mathematics for Economists (Norton, 1994)