Readings

This section provides the required and supplemental reading assignments for the course.

Textbooks

The abbreviations in the table refer to the following textbooks:

MWG = Buy at Amazon Mas-Colell, Andreu, Michael Whinston, and Jerry Green. Microeconomic Theory. New York, NY: Oxford University Press, 1995. ISBN: 0195073401.

JR = Buy at Amazon Jehle, Geoffrey, and Philip Reny. Advanced Microeconomic Theory. 2nd ed. Reading, MA: Addison-Wesley, 2000. ISBN: 0321079167.
This book is more readable and still covers much of the course material in about half as much space.

Readings

The table below provides information on the course's lecture (L) and recitation (R) sessions.

SES # TOPICS KEY DATES
Part I. Utility Functions and Decision-making
L1 Preferences, Utility Functions, Revealed Preference MWG, sections 1.B-1.D.

JR, sections 1.2 and 2.3.

Carson, Richard T., Leanne Wilks, and David Imber. "Valuing the Preservation of Australia's Kakadu Conservation Zone." Oxford Economic Papers (1994): 727-749.

Diamond, Peter, and Jerry Hausman. "Contingent Valuation: Is Some Number Better than No Number?" Journal of Economic Perspectives (Autumn 1994): 45-64.

Andreoni, James, and John Miller. "Giving According to GARP." Econometrica (March 2002).

Duflo, Esther. "Grandmothers and Granddaughters: Old Age Pensions and Intrahousehold Allocation in South Africa." World Bank Economic Review (2003).
L2 Preferences, Utility Functions, Revealed Preference (cont.)

Choice Under Uncertainty
Preferences, Utility Functions, Revealed Preference

MWG, sections 1.B-1.D.

JR, sections 1.2 and 2.3.

Carson, Richard T., Leanne Wilks, and David Imber. "Valuing the Preservation of Australia's Kakadu Conservation Zone." Oxford Economic Papers (1994): 727-749.

Diamond, Peter, and Jerry Hausman. "Contingent Valuation: Is Some Number Better than No Number." Journal of Economic Perspectives (Autumn 1994): 45-64.

Andreoni, James, and John Miller. "Giving According to GARP." Econometrica (March 2002).

Duflo, Esther. "Grandmothers and Granddaughters: Old Age Pensions and Intrahousehold Allocation in South Africa." World Bank Economic Review (2003).

Choice Under Uncertainty

MWG, section 6.B.

JR, sections 2.4.1-2.4.2.
L3 Choice Under Uncertainty (cont.) MWG, section 6.B.

JR, sections 2.4.1-2.4.2.
L4 Risk Aversion MWG, sections 6.C-6.D.

JR, section 2.4.3.
L5 Problems With Utility Theory MWG, section 6.F.

Rabin, Matthew. "Risk Aversion and Expected Utility Theory: A Calibration Theorem." Econometrica (September 2000): 1281-1292.

Kahnemann, Daniel, and Amos Tversky. "Prospect Theory: An Analysis of Decision Under Risk." Econometrica (March 1979): 263-292.

Harless, David W., and Colin Camerer. "The Predictive Utility of Generalized Expected Utility Theories." Econometrica (November 1994): 1251-1289.

List, John A. "Neoclassical Theory versus Prospect Theory: Evidence from the Marketplace." Econometrica (March 2004): 615-625.
Part II. Demand Theory
L6 Classical Demand Theory MWG, sections 2.B-2.E, 3.D-E, and 3.G-H.

JR, sections 1.3, 1.5.3, 1.4, 2.1, and 1.5.
L7 Classical Demand Theory (cont.) MWG, sections 2.B-2.E, 3.D-E, and 3.G-H.

JR, sections 1.3, 1.5.3, 1.4, 2.1, and 1.5.
L8 Classical Demand Theory (cont.)

Demand Aggregation
Classical Demand Theory

MWG, sections 2.B-2.E, 3.D-E, and 3.G-H.

JR, sections 1.3, 1.5.3, 1.4, 2.1, and 1.5.

Demand Aggregation

MWG, sections 4.A, 4.B, and 4.D.

JR, section 2.2.
R1 Price Changes and Welfare MWG, section 3.I.

JR, section 4.3.1.

Hausman, Jerry. "Valuation of New Goods under Perfect and Imperfect Competition." In The Economics of New Goods. Edited by T. F. Bresnahan and R. J. Gordon, 1997. (NBER WP 4970 version). (PDF)

Gordon, Robert J. "The Boskin Commission Report and Its Aftermath." NBER Working Paper 7759, National Bureau of Economic Research, Cambridge, MA, 2000. (PDF)
Part III. Producer Theory
L9 Monopoly Pricing MWG, section 12.B.

JR, section 4.2.0.
L10 Competitive Producer Theory and Robust Comparative Statics MWG, sections 5.B-5.C.

JR, section 3.5.

Athey, Susan, Paul Milgrom, and John Roberts. "Robust Comparative Statics." Unpublished monograph, 1998, sections 2.1, 2.2, and 2.6, pp. 1-8.

Azar, Ofer. "The Slowdown in First-Response Times of Economics Journals: Can it Be Beneficial." Economic Inquiry (2007).
L11 Competitive Producer Theory and Robust Comparative Statics (cont.) MWG, sections 5.B-5.C.

JR, section 3.5.

Athey, Susan, Paul Milgrom, and John Roberts. "Robust Comparative Statics." Unpublished monograph, 1998, sections 2.1, 2.2, and 2.6, pp. 1-8.

Azar, Ofer. "The Slowdown in First-Response Times of Economics Journals: Can it Be Beneficial." Economic Inquiry (2007).
Part IV. Partial Equilibrium Competitive Markets
L12 Competitive Equilibrium MWG, section 10.

JR, section 4.1.
  Final Exam