312203 Preistheorie (Microeconomics 1a / Preferences, Decisions and Demand) (V) (WiSe 2016/2017)

This course covers the basic notions of microeconomic theory. In particular, the course is organized in three main parts:

1) Theory of consumer’s behavior: preference relations, choice rules, consumption set, competitive budget, demand function, preference and utility, the utility maximization problem, the expenditure minimization problem
2) Theory of production: productions sets, production and cost functions, profit maximization and cost minimization, efficient production.
3) Choice under uncertainty: expected utility theory, money lotteries and risk aversion, state dependent utility.

Requirements for participation, required level

Students are expected to be familiar with standard material in mathematics and probability at the basic level. No previous formal knowledge of microeconomics theory is required.

Bibliography

Mas-Colell, M.D. Whinston and J.R. Green (1995), Microeconomic Theory (chapters 1, 2, 3, 5 and 6)

Jehle, Geoffrey Alexander, and Philip J. Reny. Advanced Microeconomic Theory, 2/e. Pearson Education India, 2006 (chapters 1, 2 and 3)