I.CHOICE AND DEMAND
Preferences and Utility: Axioms of Rational Choice , Utility, Trades and Substitution, An Alternative Derivation, Examples of Utility and Functions.
Utility Maximization and Choice: An Initial Survey, The Two-Good Case: A Graphical Analysis, The n-Good Case, Indirect Utility Function, Expenditure Minimization. Income And Substitution Effects: Demand Functions, Changes in Income, Changes in a Good’s Price, The Individual’s Demand Curve, Compensated Demand Curves, A Mathematical Development of Response to Price Changes, Revealed Preference and the Substitution Effect, Consumer Surplus , Extensions Shephard’s Lemma, Roy’s Identity, and Price Indices.
Demand Relationships among Goods: The Two-Good Case, Substitutes and Complements, Net Substitutes and Complements, Composite Commodities, Home Production Attributes of Goods and Implicit Prices and Extensions Separable Utility and the Grouping of Goods.
Market Demand and Elasticity: Market Demand Curves, Elasticity, Relationships among Elasticities, Types of Demand Curves and Extensions Aggregation and Estimation
II. PRODUCTION AND SUPPLY
Production Functions: Variations in One Input, Isoquant Maps and the Rate of Technical Substitution, Returns to Scale, The Elasticity of Substitution, Some Common Production Functions, Technical Progress.
Costs: Definitions of Costs, Cost-Minimizing Input Choices, Cost Functions, Changes in Input Prices, Change in the Price of One Input, Short-Run, Long-Run Distinction.
Profit Maximization and Supply: The Nature and Behavior of Firms, Profit Maximization, Marginal Revenue, Short-Run Supply by a Price-Taking Firm, Profit Maximization and Input Demand, Producer Surplus in the Short Run, Revenue Maximization, Managers and the Principal-Agent Problem.
III. PERFECT COMPETITION
The Partial Equilibrium Competitive, Applied Competitive Analysis, General Competitive Equilibrium and the Efficiency of Perfect Competition
MODELS OF IMPERFECT COMPETITION
Models of Monopoly, Traditional Models of Imperfect Competition, Game Theory Models of Pricing
V. PRICING IN INPUT MARKETS
Firms’ Demands for Inputs, Labor Supply and Capital
VI. LIMITS OF THE MARKET
Externalities and Public Goods and Public Choice Theory
VII. CHOICE UNDER UNCERTAINTY
Choice in Uncertain Situations: Expected Utility and Risk Aversion: Probability and Expected Value, Fair Games and the Expected Utility Hypothesis, The von Neumann-Morgenstem Theorem, Risk Aversion, Measuring Risk Aversion, The State-Preference Approach to Choice under Uncertainty and Extensions Portfolio Theory and the Pricing of Risk.
The Economics of Information: Properties of Information, The Value of Information, Information and Insurance, Moral Hazard, Adverse Selection
Game Theory and Strategic Equilibrium: Basic Concepts, Nash Equilibrium in Games, An Illustrative Dormitory Game, Existence of Nash Equilibria, The Prisoner’s Dilemma, A Two-Period Dormitory Game, Repeated Games, Games of Incomplete information.
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- Jehle, Geoffrey A. and Philip J. Reny. Advanced Microeconomic Theory. Oxford University Press. 2nd
- Mas-Colell, Andreu, Michael D. Whinston and Jerry R. Green. Microeconomic Oxford University Press.
- Nicholson,W. and C. Snyder (2012). Microeconomic Theory: Basic Principles and Extensions, South-Western, Cengage Learning, Mason, USA.
- Silberberg, E. and W. Suen (2000). The Structure of Economics: A Mathematical Analysis. McGraw Hill Publishing Company.
- Varian, H.R. Microeconomic Analysis, Norton and Company, New York.