Introductory Microeconomics | ミクロ経済基礎 

• Syllabus in English | 講義シラバス（日本語） 

• 1st semester / Mondays 3rd (13:30-15:00) / Room 509（法経研究棟） 

• Office Hours: Mondays 12:40 - 13:20 

• E-mail: yosuke.yasuda <at> gmail.com

• Website: https://sites.google.com/site/yosukeyasuda2/home/lectures/osaka2024_grad-micro  

Announcement | お知らせ  

• [2024, August 6] --- Final exam will be on August 7 from 13:30 to 15:00 in Lecture Room 1 (法経講義棟1番教室).  If you cannot take the exam due to illness or other reasons, please contact me by emailing me at <yosuke.yasuda@gmail.com> by 11:00 a.m. on August 7. I will prepare an alternative assignment.

• [2024, July 8] --- The solution keys to PS1 are uploaded to CLE. 

• [2024, June 24] --- Problem Set 2 (due on July 8) is just uploaded here. 

• [2024, June 10] --- Problem Set 1 (due on June 24) is just uploaded here.

• [2024, May 19] --- The slides for lectures 4, 5, and 6 were just uploaded. 

• [2024, Apr 23] --- The audio file of the second lecture given on Monday, April 22, has been uploaded to CLE.

• [2024, Apr 22] --- I will show up at this event (as a panelist) on Tuesday (April 23), 16:00-18:00, organized by Osaka University. Students are more than welcome to participate. It's free :) 

• [2024, Apr 16] --- The audio file of the first lecture given on Monday, April 15, has been uploaded to CLE.

• [2024, Apr 13] --- The slide for the first lecture was just uploaded here. Audio will also be recorded and uploaded to CLE. International students who are unable to enter Japan due to visa issues are encouraged to use these materials to catch up with the class. 

• [2024, Apr 13] --- The first lecture will be on April 15th. Lectures are given in Japanese, but all materials are written in English.

• [2024, Jan 2] --- The website (this page) has just been created.  

Last update: August 6, 2024 

Course Objectives

• This course offers lectures on Microeconomics at the level of advanced undergraduate to master program.

• In modern economics, the analytical tools of microeconomics are used as a foundation for analyzing macroeconomics, finance, and public finance. Therefore, mastery of the material covered in this course will help students understand a wide range of fields of economic research.

Learning Goals

• To learn how to build economic models based on the standard microeconomic frameworks such as price theory, economics of information, and game theory.

• Specifically, the first half of the course will study price theory, while the second half will study market failure, game theory, and the economics of information.

Prerequisites

• Standard knowledge of the undergraduate (intermediate) level of microeconomics and mathematics is required. The latter includes the introductory level of calculus and probability theory.

Grading Policy

• The final grade will be based on the three homework (30 points in total) and the final exam (70 points).

• You must submit at least one homework assignments in order to take the final exam.

  • Problem Set 1

  • Problem Set 2 

Special Note

• Lectures will be given in Japanese, while slides and all the course materials will be written in English.

Course Schedule

• Lec 0. Introduction  Apr 15 

  • Slide  (updated)

  • Textbook

    • Ka --- Introduction: Why and How We Use Microeconomics 

Part 1: Price Theory 

• Lec 1. Consumer Problem  Apr 22 

  • Slide  (updated)

  • Textbook

    • Ka --- Ch.1: Theory of Consumer Behavior 

    • JR --- Ch.1: Consumer Theory 

    • Va --- Ch.7: Utility Maximization 

    • MWG --- Ch3. Classical Demand Theory 

• Lec 2. Mathematics and Optimization  May 13  

  • Slide 

  • Textbook

    • Ka --- App.A: Essential Mathematical Concepts: All You Need to Know to Read This Book, App.B: Constrained Maximization Problems and the Method of Lagrange Multipliers

    • JR --- Ch.A1: Sets and Mappings, Ch.A2: Calculus and Optimisation 

    • Va --- Ch.26: Mathematics, Ch.27: Optimization 

    • MWG ---M.J: Unconstrained Maximization, M.K: Constrained Maximization 

• Lec 3. Rational Behavior  May 13, 20 

  • Slide 

  • Textbook

    • Ka --- Ch.1: Theory of Consumer Behavior

    • JR --- Ch.1: Consumer Theory

    • Va --- Ch.9: Demand 

    • MWG --- Ch.1: Preference and Choice, Ch.2: Consumer Choice 

• Lec 4. Firm Behavior  May 27 

  • Slide 

  • Textbook 

    • Ka --- Ch.2: Theory of Firm Behavior 

    • JR --- Ch.3: Theory of the Firm

    • Va --- Ch.1: Technology, Ch.2: Profit Maximization, Ch.3: Profit Function, Ch.4: Cost Minimization, Ch.5: Cost Function 

    • MWG --- Ch.5: Production 

• Lec 5. Market Equilibrium  June 3 

  • Slide 

  • Textbook

    • Ka --- Ch.3: Market Equilibrium 

    • Ka --- App.C: Compensating Variation and Equivalent Variation 

    • JR --- Ch.4: Partial Equilibrium 

    • Va --- Ch.13: Competitive Markets 

    • MWG --- Ch.10: Competitive Markets, Ch.15: General Equilibrium Theory: Some Examples

• Lec 6. General Equilibrium  June 10, 11 

  • Slide 

  • Textbook

    • Ka --- Ch.3: Market Equilibrium 

    • Ka --- App.D: A Step-by-step Guide to Proving the Second Welfare Theorem

    • JR --- Ch.5: General Equilibrium 

    • Va --- Ch.17: Exchange, Ch.22: Welfare 

    • MWG --- Ch.16: Equilibrium and Its Gasic Welfare Properties 

• Lec 7. Risk and Uncertainty  June 17  

  • Slide 

  • Textbook

    • Ka --- Ch.6: Simultaneous-Move Games

      • Ch.6.6: Uncertainty and Expected Utility 

    • JR --- Ch.2: Topics in Consumer Theory 

    • Va --- Ch.11: Uncertainty 

    • MWG --- Ch.6: Choice under Uncertainty  

Part 2: Market Failure 

• Lec 8. Monopoly and Price Discrimination  June 17, 24 

  • Slide 

  • Textbook

    • Ka --- Ch.5: Monopolies 

    • Va --- Ch.14: Monopoly 

    • MWG --- Ch.12: Market Power 

• Lec 9. Introduction to Game Theory  June 24 

  • Slide 

  • Textbook

    • Ka --- Ch.6: Simultaneous-Move Games and Nash Equilibrium

    • JR --- Ch.7: Game Theory

    • Va --- Ch.15: Game Theory 

    • MWG --- Ch.7: Basic Elements of Noncooperative Games, MWG --- Ch.8: Simultaneous-Move Games

• Lec 10. Oligopoly and Dynamic Games  July 1, 8 

  • Slide 

  • Textbook

    • Ka --- Ch.7: Dynamic Games and Credible Strategies

    • JR --- Ch.4: Partial Equilibrium

    • Va --- Ch.16: Oligopoly 

    • MWG --- Ch.12: Market Power, Ch.9: Dynamic Games 

• Lec 11. Externalities and Public Goods  July 8, 22 

  • Slide 

  • Textbook

    • Ka --- Ch.4: Market Failures 

    • Va --- Ch.23: Public Goods, Ch.24: Externalities 

    • MWG --- Ch.11: Externalities and Public Goods 

Part 3: Incentive Design 

• Lec 12. Moral Hazard  July 22, 29 

  • Slide 

  • Textbook

    • Ka --- Ch.8: Insurance and Moral Hazard 

    • Va --- Ch.25: Information 

    • MWG --- Ch.14: Principal-Agent Problem 

• Lec 13. Mechanism Design and Auctions  July 29  

  • Slide 

  • Textbook

    • JR --- Ch.9: Auctions and Mechanism Design 

    • MWG --- Ch.23: Incentives and Mechanism Design 

• Lec 14. Two-Sided Matching  On-demand 

• Final exam (90 minutes)  August 7 

Appendix (Other Possible Topics to Cover)

• Duality 

• Time and Dynamics

• Jungle Economy  

• Assignment Problems 

• The Market for "Lemons"  

  • Textbook

    • Ka --- Ch.9: Adverse Selection and Signaling 

    • Va --- Ch.25: Information 

    • MWG --- Ch.13: Adverse Selection, Signaling, and Screening 

Textbooks 

Main Textbook 

• No particular textbook will be used.

Supplementary Textbook 

• Kandori [Ka], Mighty Microeconomics: A Guide to Thinking Like An Economist, 2023. 

  • This is an English translation of the Japanese book: 『ミクロ経済学の力』

  • This extraordinary book provides a comprehensive overview of microeconomics up to the advanced undergraduate level. In particular, the author discusses the importance of market theory very clearly.

  • There is no need to purchase this textbook, as we will upload copies of all necessary sections on the CLE.

Other Great Books 

• Jehle and Reny [JR], Advanced Microeconomic Theory, 3rd edition, 2011.

  • This is a great graduate-level textbook that offers an excellent balance of level, content, reliability of description, and quantity. 

• Varian [Va], Microeconomic Analysis, 3rd, 1992.

  • This is an advanced undergraduate to graduate-level text with a reputation for clarity. It offers an excellent description of market theory and market failures and is one of the best books for understanding intuition. The structure is unique because it begins with producer theory rather than consumer theory.

Additional Recommended Books (Tentative List in Japanese)

1. *Mas-Colell, Whinston and Green [MWG], Microeconomic Theory, 1995.

   • 世界中の経済学Ph.D.コースで使われている超定番テキストです。分厚いだけあって、大学院ミクロで必要な内容が全てカバーされています。頭から通読しようとはせず、必要な箇所について辞書的に使って下さい！

2.  Riley, Essential Microeconomics, 2012. 

3. *ギボンズ『経済学のためのゲーム理論入門』創文社, 1995.

   • ゲーム理論を体系的に記述した定番テキストです。簡潔ながら高度な内容までカバーされていて、1〜3を補完する優れたテキストです。

4. *Tadelis, Game Theory: An Introduction, 2012.

   • 7と同程度の難易度ですが、記述がより分かりやすく内容も（やや）包括的です。どちらか好みの方を使ってください。

5. 尾山大輔・安田洋祐編『改訂版 経済学で出る数学：高校数学からきちんと攻める』日本評論社, 2013.

   • 経済学における応用を意識した新しいタイプの経済数学テキストです。ミクロ経済学の副読本として最適！

   • 本書の第1〜7章に完全対応したワークブックもあります。

6. 林貴志『ミクロ経済学 増補版』ミネルヴァ書房, 2013.

   • 扱っている内容自体は学部レベルですが、大学院以上で求められる厳密な思考や定理（や証明）について、そのイロハや勘所が非常に丁寧に書かれている希有なテキストです。物事をイチからしっかり理解したい人、理論研究に進みたい人におすすめします。

7. ディキシット『経済理論における最適化（第2版）』勁草書房, 1997.   

   • 超一流の経済理論家による最適化のとても分かりやすい入門書。

8. William Neilson, Must-have Math Tools for Graduate Study in Economics, 2009version 

   • 経済数学の初歩を非常に分かりやすく解説したオンライン資料です。

   • 著者のウェブサイト（こちら）から無料でダウンロードできます。

        （*は大学院レベル、無印は学部中級～大学院初級レベル）