I Term September - December

• Microeconomics I (Prof. Giovanni Andreottola)

Preference and choice: preference relations, choices rules, the consumption set, competitive budgets, demand functions and comparative static. Preference and utility. The utility maximization problem. The expenditure minimization problem. Duality. Indirect utility and expenditure function. Integrability. The weak axiom of revealed preferences. The strong axiom of revealed preference. Welfare evaluation and economic changes. Aggregate demand and wealth. Production: production set, profit maximization and cost minimization, efficient production. Choice under uncertainty: expected utility theory, money lottery and risk aversion, state dependent utility. Monopoly. Oligopoly. General equilibrium theory: pure exchange, Edgeworth box, consumer-producer economy.     

  Bibliography:

• Hal R. Varian, "Microeconomic Analysis", W. W. Norton & Company, 3rd edition, 1993.
• Andrew Mas-Colell, Michael D. Whinston and Jerry R. Green, "Microeconomic Theory", Oxford University Press, 1995.