Advanced Microeconomics I

Lecture notes will be updated constantly. For typos and mistakes, please email me.

Part I: Math Review

Lecture 1: Sets, Relations and Orders

Lecture 2: Linear Algebra

Lecture 3: Convexity

  • Write-ups: 8/18, 8/20 (Section 3, Section 4)

  • Additional Readings: [O] A.4, G, [K] Appendix 3, [SB] 21, [JR] A1.4

Lecture 4: Real Analysis

  • Write-ups: 8/20

  • Additional Readings: [O] A.3-A.4, C.1, C.3, D, [K] Appendix 2, [D] 1.6-1.8

  • Exercise 2

Lecture 5: Differentiation

  • Write-ups: 8/25 (Section 3, Section 4)

  • Additional Readings: [JR] A2.1, [SB] Chapters 2-5, 14, 16

Lecture 6: Smooth Optimizations

Part II: Consumer Theory and Producer Theory

Lecture 7: Utility Maximization

  • Write-ups: 9/1, 9/3 (Section 3, Section 4)

  • Additional Readings: [D] Ch 2,4 [B] Ch 6 [JR] 1.1-1.3, 1.5 [K] Ch 3 [OR] 5.1-5.3

Lecture 8: Expenditure Minimization

  • Write-ups: 9/3, 9/8 (Section 3, Section 4)

  • Additional Readings: [B] Ch 6 [JR] 1.4 [K] Ch 10

Lecture 9: Comparative Statics

  • Write-ups: 9/8, 9/10 (Section 3, Section 4)

  • Additional Readings: [JR] 1.5, 2.1 [K] Ch 10, 11, [OR] 5.6

Lecture 10: Welfare

  • Write-ups: 9/10

  • Additional Readings: [JR] 4.3, [K] 12.2,

Lecture 11: Theory of Firms

  • Additional Readings: [JR] Ch 3, [K] Ch 9, [OR] Ch 6

Exercise 4

  • Discussion of Excercise (9/17)

Assignment 1

Part III: Choice and Uncertainty

Lecture 12: Preference and Utility Presentation

  • Additional Readings: [D] 4.4-4.7, [JR] 1.2, [K] Ch 1 - 2, [OR] Ch 1,4

Lecture 13: Choices and Revealed Preference

  • Write-ups: 9/24, 9/29 (Section 3, Secion 4)

  • Additional Readings: [K] Ch 3 - 4, [OR] Ch 2, 5.5, [JR] 2.3

Lecture 14: Uncertainty and Expected Utility

Lecture 15: Attitude Towards Risks

Exercise: 10/13 (Section 3, Seciont 4)

Assignment 2

Part IV: General Equilibrium Theory

Lecture 16: Walrasian Economy

Lecture 17: Existence of Walrasian Equilibria

  • Write-ups: 10/22 (Section 3, Seciont 4)

  • Additional Readings: [D] Ch 5, [B] Ch 4.7-4.9

Lecture 18: Efficiency of Walrasian Equilibria

  • Write-ups:

  • Additional Readings: [D] Ch 6, [B] Ch 3, 5

Lecture 19: Core

  • Write-ups:


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 general equilibrium theory:
    [D] Gerard Debreu, Theory of value: An axiomatic analysis of economic equilibrium. (Yale University Press, 1959)
    [B] Truman Bewley, General Equilibrium Theory, Overlapping Generations Models, and Optimal Growth Theory (Harvard University Press, 2010)

  • 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)