Content Lotteries and expected utility Risk aversion Metric Subjective probability theory

Aggregation and Welfare Content Consumer's surplus Aggregation Representation consumer

profit maximization Content: Some definition Isoprofit curve Demand function and it's properties supply function and it's properties Profit function and it's properties

CONTENT Wa and demand law From preferences to utility Utility maximization EXpenditure minimization

Contents Inter-temporal preferences Two periods Several periods · Asset market CAPM -APT Complete market Pure arbitrage

Content The“core” Uniqueness of equilibrium Stability of equilibrium Welfare

Duality Given the technology we can obtain the cost function are the cost function contains the same information of the technology (production function)? If the answer is yes, then the cost minimization behavior will indicate the technology of the firm

第一节 博弈论和策略行为 第二节 同时博弈：纯策略均衡 第三节 同时博弈：混合策略均衡 第四节 序贯博弈

第一节 成本的概念 第二节 短期总产量和短期总成本 第三节 短期成本曲线 第四节 长期成本曲线

8.1. Independent Firms The downstream firm's problem is max(a-bxc-wT The upstream firm's problem is max(a-2b)3-cr The output is 8.2. Integrated Firm Suppose now that the two firms merge into one firm. This firms problem is max(a-by)y