A consumption externality is a situation where a consumer cares directly about another agent’s consumption or production of a particular good. An externality can be positive or negative: 1. Negative: Loud mobile phone use in public places. 2. Positive: Pipe smoking in enclosed public places

In the last lecture two concepts were introduced: Pareto efficiency and general equilibrium. How do they relate? Theorem: The first welfare theorem states that every general equilibrium involves a Pareto efficient llocation

Endowments and Allocations Consider first the case of a pure exchange economy. (One with no production). Suppose there are two consumers, A and B, in a two good economy. A starts with an endowment of ωA =

Production — Oligopoly 1 Cournot Duopoly Suppose there are two firms in an industry. Their strategy spaces are quantities. Their payoffs are profits. Industry demand is given by the inverse demand function, P(Q), where industry production is Q = q1 + q2. They

Production — Games 1 Monopolistic Competition Monopolistic competition arises when there are a large number of price-setting firms in an industry with free entry. Suppose there are n firms. In the short run, each firm faces an nth of the market demand curve

9.1 The Laplace Transform 1. The relationship 2. Region of Convergence（收敛域）

Let be a band-limited signal with then is uniquely determined by its samples if where

6.1 The Magnitude-Phase Representation （ 幅度-相位） of the Fourier Transform

4.1 Representation of Aperiodic Signals :The Continuous-Time Fourier Transform

1. Continuous-time system 2. Discrete-time system