microeconomics summary.docx
TRANSCRIPT
Microeconomics:
1. Consumer Theorya. Utility Function- Express and Draw ICb. Properties of IC ( Monotonicity and Convexity)c. Maximisation problem: Utility Max Lagrangrian/Budget Constraintd. Optimal Bundle: Marshaillian e. Giffen Good: Field Experiment *f. Marshallian & Hicksiang. Budget Constraint ( Rat) *
2. Theory of the Firm: Production Function ( Cost Minimisation)a. Factor Demand ( K* and L*)b. Cost Functionc. Profit Maximisation Problem
3. Welfare ( Use integrals)a. Consumer Surplus ( Mashaillian Demand)b. Compensating variation ( Hicksian Demand ) c. Decision under certaintyd. Degree of risk aversion ( Averse, Neutral, Lving) e. Coefficient of Absolute Risk Aversion f. Coefficient RRAg. Implied Minimum Coefficient of Absolute Relative Riskh. EU ( gamble/no gamble)
4. Game Theory a. Model as strategic form b. Dominant/Dominatedc. Pure/Mixed NEd. BRe. Check NE f. Electoral competition Model BRg. Betrand game ( P=MC) h. Cournot game
5. Auctiona. Types of auction: 1st ,2nd,Dutch,English,NZ*b. Best bidding strategy
6. Extensive Form Gamea. Draw game treeb. Find SPNEc. Relationship betweem SPNE AND NEd. Find 1 that is not SPNE
7. Economics of Informationa. Adverse Selection ( tute)b. Moral Hazard: Principal- Agent Model