Saarland University | Faculty of Human and Business Sciences (HW)

Advanced Microeconomic Theory I: Course Details

  • Overview:

    We will take up several foundational topics in microeconomic theory. We will begin with the analysis of individual preferences and decisions, and continue with studying consumer and producer choice. Then we will discuss results from classical demand and production theory which will be extensively used when presenting basic concepts from general equilibrium theory. Within this theory we will focus on and relate the following two themes: decentralization by prices and improving by cooperation. The first theme is connected with study of the conditions under which a simultaneous price-guided clearing of several goods markets is possible, while the second one explores the idea that individuals independently or cooperatively may be able to improve upon redistributions of goods.
  • Outline:

    • Preferences, utility, and choice
    • Consumer preferences and consumer choice
    • Classical demand theory: utility maximization versus expenditure minimization
    • Production theory: technology and supply
    • General equilibrium: decentralization by prices
    • Cooperative game theory
    • General equilibrium: improving by cooperation
  • References:

    • Blad, M. and H. Keiding (1990): Microeconomics, North-Holland.
    • Hildenbrand, W. and A. Kirman (1988): Equilibrium Analysis: Variations on Themes by Edgeworth and Walras, Elsevier Science.
    • Kreps, D. (1990): A Course in Microeconomic Theory, Princeton University Press.
    • Kreps, D. (1988): Notes on the Theory of Choice, Westview Press.
    • Mas-Colell, A., M.D. Whinston, and J.R. Green (1995): Microeconomic Theory, Oxford University Press.
    • Moulin, P. (1988): Axioms of Cooperative Decision Making, Cambridge University Press.
    • Peleg, B. and P. Sudhölter (2007): Introduction to the Theory of Cooperative Games, 2nd ed., Springer-Verlag.
    • Peters, H. (2008): Game Theory: A Multi-Leveled Approach, Springer-Verlag.
    • Reny, P. and G. Jehle (2011): Advanced Microeconomic Theory, 3rd ed., Addison Wesley.
    • Rubinstein, A. (2005): Lecture Notes in Microeconomics, Princeton University Press.
    • Varian, H. (1992): Microeconomic Analysis, 3rd ed., W.W. Norton & Company.
  • Language:

    The course is taught in English. The exam will be posed in English, but questions can be answered in either English or German.

  • Times and Place:

    • Lecture:
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    • Tutorial:
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