Microeconomics I

Giovanni Di Bartolomeo (gdibartolomeo@unite.it)

Outline

  • Consumer Theory: preference relations, utility functions, representation of preferences via utility functions, budget set and consumer problem, demand functions.

  • Production Theory: production sets, profit maximization, and cost minimization.

  • Choice under Uncertainty: expected utility theory, money lotteries, and risk aversion, first-order stochastic dominance between payoff distributions.

  • General Equilibrium Theory: competitive equilibrium in pure exchange economies, the existence of equilibria, Pareto optimality, and welfare theorems.

Book

  • Mas-Colell, A., Whinston, M.D., Green, J.R., 1995. Microeconomic Theory, Oxford University