Econ 80a: Microeconomic Theory Brandeis University Spring 2011 Syllabus Instructor: Nabeela N. Alam (PhD Candidate, Department of Economics) nabeela@brandeis.edu Class times: Section 1 MW 3:40 5:00pm Section 2 MW 5:10 6:30pm Recitation M 6:40 8:30pm Class location: Lemberg 54 Office hours: Tue 10:30am 12:30pm Office location: Sachar, PhD Room Teaching Assistants: Section 1: Section 2 Neelanjana Gupta (ngupta@brandeis.edu) Tues 6-7pm @ Upper Green Room) Traci Gordon (tgordon@brandeis.edu) Wed 1:30-2:30pm @ Upper Green Room Prerequisites: ECON 8b, MATH 10a (or equivalent) Please note that this class requires knowledge of calculus, and assumes knowledge of basic microeconomic concepts covered in Econ 2a Course website available on Latte (http://moodle.brandeis.edu). Announcements, assignments, solutions, handouts and all other information will be communicated through course website. Course description: In this course we will study the individual behaviour of economic units such as households and firms. How do consumers make a choice between two goods? How does a firm decide how much to produce and what price to charge? How does firm behaviour change when moving from a competitive market to a monopolistic one? How does the availability of information affect behaviour in markets? The primary tool for analyzing these questions is optimisation theory, and we will apply this in game theory as well. Finally, we will cover some topics in the exciting and rapidly growing field of behavioural economics. Course materials: Required : Recommended: Hal R. Varian, Intermediate Microeconomics: A Modern Approach, 8 th edition, Norton Robert S. Pindyck and Daniel L. Rubinfeld, Microeconomics, 7 th edition (2008), Prentice Hall
Course requirements and expectations: There are 12 problem sets for this course. These are due at the beginning of class. Late problem sets, meaning those turned in once lecture has begun, will not be graded. In addition there are three exams 2 midterms and a final exam. The two midterms will take place during recitation hours. The final exam date, time and location are to be determined by the registrar. The exams are non-cumulative, but build heavily on the material covered in prior sections. (See Course Schedule for dates.) Grading: Class Participation (includes attendance) 5% Problem Sets 20% Exam 1 25% Exam 2 25% Exam 3 25% Policy on lateness and missing class: No late problem sets are accepted. Solutions will be posted online as soon as problem sets are due. As a result, flexibility will be in the form of automatically dropping the scores of the two lowest-scoring problem sets. The material covered in class will not necessarily be found in the book, and so it is important not to miss classes. This is not a course where you can expect to ace the exams without coming to class. However, sometimes situations are beyond our control and so you are allowed two unexcused absences from class. Any unexcused absences beyond will cost you credit in the course. Academic Honesty: You are expected to be honest in all your academic work. It is your responsibility to be familiar with Brandeis policies regarding academic honesty as described in the Rights and Responsibilities handbook available at http://www.brandeis.edu/studentlife/sdc/rr/. If you have any questions regarding expectations, please contact me. Disability Information: If you are a student with a documented disability on record at Brandeis University and you wish to have a reasonable accommodation made for you in this class, please see me immediately.
Course Schedule Date L/ R Topic Reading Assignment Wed, Jan 19 LEC 1 Introduction to Intermediate Micro Ch 1 I. Consumer Theory Mon, Jan 24 LEC 2 Budget constraints a form of scarcity Ch 2 PS #1 posted REC 1 Math Review Handout Wed, Jan 26 LEC 3 Preferences Ch 3 Mon, Jan 31 LEC 4 Utility Ch 4 REC 2 Practice problems/ Problem Set Review Wed, Feb 2 LEC 5 Choice Utility maximisation w/ budget constraints Ch 5 Mon, Feb 7 LEC 6 Individual Demand Ch 6 REC 3 Practice problems/ Problem Set Review Wed, Feb 9 LEC 7 Slutsky Equation Income & Substitution Effects Ch 8 Mon, Feb 14 LEC 8 Consumer Surplus Ch 14 REC 4 Practice problems/ Problem Set Review PS #1 due PS #2 posted PS #2 due PS #3 posted Wed, Feb 16 LEC 9 Market Demand Ch 15 PS #3 due Mon, Feb 21 Wed, Feb 23 No Class Midterm Break No Class Midterm Break PS #4 posted Mon, Feb 28 LEC 10 Partial Equilibrium Ch 16 PS #4 due Mon, Feb 28 EXAM Midterm #1 II. Producer Theory Wed, Mar 2 LEC 11 Technology or the Production Function Ch 18 PS #5 posted Mon, Mar 7 LEC 12 Profit maximization Ch 19 REC 5 Practice problems/ Midterm #1 Review Wed, Mar 9 LEC 13 Cost Minimization Ch 20 PS #5 due PS #6 posted
Date L/ R Topic Reading Assignment Mon, Mar 14 LEC 14 Cost Curves Facing a Firm Ch 21 REC 6 Practice problems/ Problem Set Review Wed, Mar 16 LEC 15 The Supply Decision of Competitive Firms Ch 22 PS #6 due PS #7 posted Mon, Mar 21 LEC 16 Industry Supply Ch 23 REC 7 Practice problems/ Problem Set Review III. Markets Wed, Mar 23 LEC 17 Monopoly Ch 24 PS #7 due PS #8 posted Mon, Mar 28 LEC 18 Price Discrimination by a Monopolist Ch 25 PS #8 due Mon, Mar 28 EXAM Midterm #2 Wed, Mar 30 LEC 19 Oligopoly Ch 27 PS #9 posted Mon, Apr 4 LEC 20 General Equilibrium in an Exchange Economy REC 8 Practice problems/ Midterm #2 Review Ch 31 IV. Market Failure Wed, Apr 6 LEC 21 Externalities Ch 34 PR Ch18 Mon, Apr 11 LEC 22 Public Goods Ch 36 PR Ch18 REC 9 Practice problems/ Problem Set Review PS #9 due PS#10 posted V. Game Theory and Behavioural Economics Wed, Apr 13 LEC 23 Game Theory Ch 28 PS #10 due PS#11 posted Mon, Apr 18 No Class Spring Break/Passover Wed, Apr 20 No Class Spring Break/Passover Mon, Apr 25 No Class Spring Break/Passover Wed, Apr 27 LEC 24 Game Applications (Mon schedule) Ch 29 PS #11 due PS#12 posted
Date L/ R Topic Reading Assignment REC 10 Practice problems/ Problem Set Review Mon, May 2 LEC 25 Behavioural Economics Ch 30 REC 11 Practice problems/ Problem Set Review Wed, May 4 LEC 26 Reserve Day PS #12 due TBD EXAM Final Exam