Equilibrium price. Equilibrium allocation: x=xi(p,p·w2), Note: A p* for any >0 is also an equilibrium price. Offer curve: (p)(p, p. w;). The equilibrium is the intersection point of the offer curves. Excess demand function:
11. Competition and Monopoly, some preliminary discussions a. Monopoly Pricing b. Cournot and Bertrand Oligopoly C. Two Part Pricing d. Price Discrimination e. Regulation
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
5. Aggregating Consumers Consumer Heterogeneity and a Discrete good b. The Properties of Aggregate Demand The Existence of a representative Consumer d. Externalities e. The Social Multiplier
7. More on Uncertainty Prospect Theory, LoSS Aversion b. Subjective Utility and Common Knowledge Risk Aversion d. First and Second Order stochastic Dominance Asset demand and risk Aversion
9. The Producer's Problem a. Firms and Maximization b. Production Functions C. Supply and Profit Functions d. Cost Functions e. Duality and Producers f. Application: Urban Systems
8. Financial Markets a. Insurance Markets b. Moral Hazard C. Adverse Selection with one price contracts d. Simple Financial Markets-Comparative Statics e. Option Pricing and Redundant Assets
6. Choice Under Uncertainty a. Representing Uncertainty: Lotteries and Compound Lotteries b. Axioms of Expected Utility C. The Expected Utility Theory d. Empirical Challenges to Expected Utility Theory-the Paradox Business e. Application: Crime and punishment
