Credit

3.00   (L-T-P:   3-0-0)

Department / Center / School / Unit

Economics

Course Objectives

This course aims to introduce the students to formalization of individual decision making and various facets of it under different perspectives- when the individual is a consumer (consumer’s choice, demand, dilemmas etc.) or when she is a producer (profit maximization or cost minimization, characterization of different market structures under various degree of market power). Finally, the course discusses different aspects of decision-making under uncertainty.

Course Contents

This course provides an introduction to microeconomic theory and is the first course in the microeconomic theory series. The course will begin with detailed analysis of consumer’s choice behavior and required mathematical tools from optimization theory and real analysis would be reviewed. Producer’s behavior is analyzed next where emphasis is put on characterization results under different market structures, especially strategic aspects in an oligopolistic market. The next topic is analysis of decision-making under uncertainty and Anscombe-Aumann framework is introduced. Next non-expected utility theories are covered, Topics of recent and relevant interest will also be covered if time permits.

Suggested References

1. Kreps : A course in microeconomic theory, Princeton, 1990.
2. Mas-Colell, Whinston and Green : Microeconomic theory, Oxford, 1995.
3. Gilboa: Theory of Decision under Uncertainty, Econometric Society Monograph, 2009.
4. Vohra: Advanced mathematical economics, Rutledge, 2004.
5. Rubinstein: Lecture Notes in Microeconomics, 2015.