Early Danish Trading Post (Ribe)
Early Danish Trading Post

ECON 701
West Virginia University
Fall 2023
Reynolds Hall
4:00- 5:40  T-TH
Underground Shopping Mall in Beijing
Beijing Shopping Mall (UG)

Instructor: Professor Roger D. Congleton .
Office: 4131 Reynolds Hall
E-Mail roger.congleto@mail.wvu.edu          (the best way to contact Prof Congleton)
Office Hours: 2:30 - 3:30 Wednesdays-Thursdays, and other afternoons by appointment

OptionalTexts:. Nicholson, W. Microeconomic Theory, Twelfth Edition. (2016)

Knight, F. H. Risk Uncertainty and Profit. (1985/1921) Midway Reprint edition, University of Chicago Press. .

Mas-Colell, A., Green, J. R., and Whinston, M. D. (1995) Microeconomic Theory. Oxford: Oxford University Press
. Congleton, R. D. (2022) Solving Social Dilemmas: Ethics, Politics, and Prosperity. Oxford University Press
Extended Reading List
.Course Focus: Microeconomics I is divided into two parts with related and complementary goals. The first part of the course focuses on the logic of the neoclassical competitive model and explores how that model can be used to explain the origins of such markets, the allocation of goods, the distribution of income. It analyzes circumstances of intense market competition.  .

The second part explores implications of what might be called market imperfections: imperfect information, uncertainty, innovation, fraud, regulation, and public policy. The coverage is partly is topical and varies by semester. Topics from the economics of information, the economics of risk and uncertainty, normative analysis, affects of culture, political economy, law and economics, and economic dynamics may be covered.
The goal of the course is to provide graduate student with a thorough understanding of the core neoclassical models, and with an appreciation of its power by exploring subset of post war extensions of that model. The course is lecture and web-text based.
Link to
Math Econ Course

. Tentative Course Outline (pdf)
Dates Topic
. I. The Neoclassical Economics of Competitive Markets .
17-Aug-23 1. Introduction to Course and Economic Models
N: 1, 2, 3
MWG: 1, 2 Kn 3
. Methodological Individualism: Rational Choice as a modeling device. Scarcity and optimization. What does rational choice mean? Choosing patterns of consumption.
Appendix for
First Lecture
17-Aug-23 2.Consumer Demand
N: 11, 12 
MWG: 5
. The Geometry and Mathematics of Decisions to Purchase Goods and Services, Cobb-Douglas Models, More Abstract Models of Consumer Choice                 [HW 1]
29-Aug-09 3. Supply
N: 5, 6, 7, 13 
MWG: 3, 5  Kn: 6
. The Mathematics of Decisions to Produce Goods for Sale in the Short Run and Long Run by Price-Taking Firms, The Implications of Diminishing Returns. Monopolists and Price- Making Firms. .                                                                                         [HW 2]

5-Sept-23 4. Production
N: 21, 22, 23;
MWG: 3, 5 Kn: 4
. Decisions about how goods are Produced, and what they cost?. Input Prices, Technology, and Production Costs for Price Taking firms. Demands for Inputs.                   [HW 3]
.Appendix for Lectures 2-4
12-Sept-23 5. Equilibrium Prices
N:13, K:7
. Market Clearing Prices in the Short Run. Marshallian and Ricardian Theories of Long Run Supply, Geometry and Calculus-Based Models of Market Prices, .                   [HW 4]
Review for Midterm Exam    (Prerecorded overview of Part I)
Study Guide
Selected Answers
19-21 - Sept-23 MIDTERM EXAMINATION (take home)

28-Sept-23 Midterm Exams Returned and Reviewed 
Suggested Paper Ideas

II. Extensions of Neoclassical Price Theory
6. Introduction to Part II, Intertemporal Choice

Plans that take more than 1 "period" to excecute require taking into account both changes  that may occur through time and interest rates. Chapter 6 develops models of consumer choice where consumption takes place in long enough periods that interest rates and changes in income need to be taken into account. The chapter also introduces present and future value calculations in money terms.

28-Sept-23 7. Economic Consequences of Risk
N: 9, 10, 19
MWG: 13, 14

The effects of consumer ignorance and quality variation. Risk Aversion and Choice under Uncertainly. Markets for Insurance. Search and Signaling games: advertising as cheap talk.   Risks and the Extent of Markets                                                [HW 5]
5-Oct-23 8. Entrepreneurship: Innovation, Uncertainty, and Management
N:9, 10; 
MWG: 14 Kn: 9, 10

Knight, Schumpeter, and Kirzner on Entrepreneurship. Innovation as a source of uncertainty. Firms as Organizations, Team Production and Management, Formeteurs, Investing in Innovation                                                                            [ HW 6]

III. Under Pinnings of Markets: Further Extensions
9. Law and Economics
N: 26 
MWG: 11, 12

The Economics of Crime the Extent of Markets, Fraud and the extent of Markets, the Quality of Law Enforcement, Realizable Gains to Trade, and the Extent of Markets
                                                                                                                  [HW 7]

19-Oct-23 10. Politics and Economics--Political Economy
N: 26, 27
MWG: 21, 22
. Electoral Competition and Electoral Determined Public Policy, Market Adjustments to Public Policies, Investments in Rent Seeking and the Extent of Markets.          [HW 8] .
26-Oct-09 11. Ethics and the Efficiency of Markets
N: 24
Kn: 5, 11 / C: 6,8

Culture and the Efficiency of Markets. Economizing on Etihcal Agents. Culture and the Extent and Growth Rates of Markets. Extended Rational Choice Models.
7-Nov-23 12. Welfare Economics

Deciding what is best, Utillitarian Notions of Economic Efficiency, the Pareto Criteria, Contractarianism. The normative properties of exchange (w and w/o externalities).
N: 9 
MWG: 10, 15, 16
16-Nov-23 13. Overview of the course

Fall Break

Review for the Endterm exam

30-Nov-23 END-TERM EXAM .
Exams Returned and Reviewed, Paper Work Shop
Ideas for Papers
13-Dec-23 8-10 page paper due on an applied micro topic
. Grades:                                                                Midterm Exam 35.00%
. 8-10 page Paper 25.00%
. Final Exam 35.00%

. Marginal extra credit for class participation (up to 5% bonus)