| 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 | ||
Table of Contents
Study Materials
Readings
 When you click the Amazon logo to the left of any citation and purchase the book (or other media) from Amazon.com, MIT OpenCourseWare will receive up to 10% of this purchase and any other purchases you make during that visit. This will not increase the cost of your purchase. Links provided are to the US Amazon site, but you can also support OCW through Amazon sites in other regions. Learn more. |
This section provides the required and supplemental reading assignments for the course.
Textbooks
The abbreviations in the table refer to the following textbooks:
MWG = Mas-Colell, Andreu, Michael Whinston, and Jerry Green. Microeconomic Theory. New York, NY: Oxford University Press, 1995. ISBN: 0195073401.
JR = 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.