4. Welfare Analysis and Other Issues a. Measuring Welfare b. First Order and Second Order Losses C. Taxes and Welfare d. Household Production (did last class) e. The Hedonic Approach
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
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
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
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
