3. Comparative Statics a. Indirect Utility Functions b. Expenditure Functions and duality C. Expenditure Function and Price Indices d. Slutsky via Utility Functions e. Slutsky via Preferences

2. Choice and Utility Functions a. Choice in Consumer Demand Theory and Walrasian Demand b. Properties of demand from continuity and properties from WARP . Representing Preferences with a Utility Function d. Demand as Derived from Utility Maximization e. Application: Fertility

11. Competition and Monopoly, some preliminary discussions a. Monopoly Pricing b. Cournot and Bertrand Oligopoly C. Two Part Pricing d. Price Discrimination e. Regulation

10. More on Production a. Derived Demand-Marshall's Laws b. Long Run/Short Run, LeChatelier, Dynamics C. Aggregating Supply d. Theory of the Firm, the Holdup Problem e. Agency Issues f. Application: The Coase Theorem

Contents Describe preferences Indifference curves Well-behaved preferences Marginal rate of substitution

Contents Instructor and TAs Requirements Course outline An example: market for apartments

Revealed Preference Analysis Suppose we observe the demands (consumption choices) that a consumer makes for different budgets. This reveals information about the consumer’s preferences. We can use this information to

Information in Competitive Markets In purely competitive markets all agents are fully informed about traded commodities and other aspects of the market. What about markets for medical services, or insurance, or used cars?

Structure Definition When to provide a public good – Efficient provision – Private provision: free-riding Variable quantities of public good – Efficient amount – Free-riding problem How to provide public goods? Demand revelation

Structure Definition Consumption externality Production externality The tragedy of commons