 Early Danish Trading Post
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ECON 701 West Virginia University Fall 2023 Reynolds Hall 4:00- 5:40 T-TH |
 Beijing Shopping Mall
(UG)
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| Instructor: | Professor Roger D. Congleton | . |
| Office: | 4131
Reynolds Hall E-Mail roger.congleto@mail.wvu.edu (the best way to contact Prof Congleton) |
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| Office Hours: | 2:30 - 3:30 Wednesdays-Thursdays, and other afternoons by appointment |
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| OptionalTexts:. | Nicholson,
W. Microeconomic Theory, Twelfth Edition. (2016) |
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| 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 |
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| .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. | . |
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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. |
Undergradute Math Econ Course |
| . | Tentative Course Outline (pdf) |
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| Dates | Topic |
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| . | I. The Neoclassical Economics of Competitive Markets | . |
| 17-Aug-23 | 1. Introduction to Course and Economic Models |
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. |
First Lecture |
| 17-Aug-23 | 2.Consumer Demand |
MWG: 5 |
| . | The
Geometry and Mathematics of Decisions to Purchase Goods
and Services, Cobb-Douglas Models, More Abstract Models of
Consumer Choice
[HW 1] |
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| 29-Aug-09 | 3. Supply |
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.
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[HW 2] |
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| 5-Sept-23 | 4. Production |
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] |
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| 12-Sept-23 | 5. Equilibrium Prices |
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| . | 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] |
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| 14-Sept-23 |
Review for Midterm
Exam (Prerecorded
overview of Part I) |
Selected Answers |
| 19-21 - Sept-23 | MIDTERM
EXAMINATION (take home) |
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| 28-Sept-23 | Midterm Exams Returned and Reviewed |
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| II. Extensions of Neoclassical Price Theory |
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| 26-Sept-23 |
6.
Introduction to Part II, Intertemporal Choice |
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| 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. |
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| 28-Sept-23 | 7. Economic Consequences of
Risk |
N: 9, 10, 19
MWG: 13, 14
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| 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
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| 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 | ||
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12-Oct-23
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9. Law and Economics |
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] |
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| 19-Oct-23 | 10. Politics and
Economics--Political Economy |
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 |
Kn: 5, 11 / C: 6,8 |
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Culture
and the Efficiency of Markets. Economizing on Etihcal
Agents. Culture and the Extent and Growth Rates of
Markets. Extended Rational Choice Models. |
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| 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
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| 16-Nov-23 | 13. Overview of the course |
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| Fall Break |
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| 28-Nov-28 |
Review
for the Endterm exam |
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| 30-Nov-23 | END-TERM EXAM | . |
| 5-Dec-23 |
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% |
| Homework |
5.00% |
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| . | Marginal extra credit for class participation (up to 5% bonus) |