312207 Microeconomics 1a (Preferences, Decision and Demand) and 1b (General Equilibrium) (V) (WiSe 2026/2027)

The aim of this course is to provide a deep understanding of microeconomics without much previous knowledge. This means that the course will start with basic concepts, but the learning curve will quickly be steep. The course tries to find a compromise between technical accuracy and economic relevance.

Microeconomics 1a: Preferences, Decision and Demand

The first part deals with individual decision-making by consumers and producers.
Consumer choice: consumption set, competitive budget, preference relation and utility, the utility maximization problem, demand function, aggregate demand.
Production: productions sets, production and cost functions, profit maximization and cost minimization, aggregation, efficient production.

Microeconomics 1b: General Equilibrium

The second part deals with Walras equilibria and Pareto optima. Definition of Pareto optima and competitive equilibria. Pure exchange economy: the Edgeworth box. General versus partial equilibrium. The first and the second fundamental theorems of welfare economics. First order conditions for Pareto optima. The basic equations of equilibria, existence of equilibria.

There will be a tutorial as well as plenty of occasions for you to ask questions and discuss problems.

Teilnahmevoraussetzungen, notwendige Vorkenntnisse

None.

Literaturangaben

Mas-Colell, A., Whinston, M.D., Green, J., Microeconomic Theory, Oxford University Press, 1995. Chapters 1-5, 10 and 15-18.