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| Econ 301 |
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Spring 2014
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| WVU |
B&E - D 440
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| Instructor: | Professor Roger D. Congleton | .T/Th 1:00-2:15 |
| Office: | 405 B&E |
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| .Office Phone | 3-7866 |
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| .E-Mail |
roger.congleton@mail.wvu.edu |
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| Office Hours: | 2:00-3:30 Wednesday and Fridays, and most other times by appointment |
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| Required Text: | Microeconomics: Theory
and Applications, E. K. Browning and M. A>
Zupan, Wiley. |
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| Optional Texts: | . | |
| . | Knight, F. H. Risk Uncertainty and Profit. (1985/1921) Midway Reprint edition, University of Chicago Press. |
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| Course Description: | . | |
| . | Intermediate Micro is a lecture based
course that focuses on the core tools of undergraduate
economics. It could be thought of as a course on the
geometry of economics or on implications of net-benefit
maximizing choice. Although the main focus of the course
is theory, applications to a wide range of choice and
policy settings are used to illustrate the relevance of
the tools developed in class. . |
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The main body of the
course is divided in to four parts,(1) the the logic of
net-benefit maximizing choice (2) market structure:
competitive and monopolistic markets, (3) elementary game
theory and (4) tradeoffs in multidimensional settings.. The goal of the course is to provide the student with a thorough understanding of the core neoclassical tools, and their ability to illuminate a wide variety of market, public policy, and day-to-day issues. |
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| . | Tentative Course Outline | . |
| Dates | Topic |
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| . | I. The Economics of Competitive Markets | . |
| 9-Jan-14 | 1.
Introduction
to Micro Economics |
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| . | A Brief Look at Economic History. Models
as a Method of Explanation and Prediction. Methodological
Individualism: Rational Choice as a modeling device.
Microeconomics the logic of choice. (What does rational
choice mean?) Normative and Positive Economics (1
lectures) |
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| 14-Jan-14 |
2. Demand and Supply as Consequences of Net Benefit Maximization Rational choice as net benefit maximization.The geometry of choice. Use of marginal cost and marginal benefit curve to model consumers and firms, supply and demand, market efficiency, (4 lectures) |
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| 28-Jan-14 |
3. Competitive Markets as an "Ideal Type" Assumptions for pure competitive markets. Prices as coordinating mechanisms. Supply and demand in the short and long run. The difference between Ricadian and Marshallian Long run equilibria.The meaning of entry and exit. (2 lectures) |
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| . 4-Feb-14 | 4.
Applications:
Policy Analysis Using Demand and Supply Curves Markets for Inputs, Effects of Price Controls and Entry Barriers, Dead Weight Losses in the Short and Long Run. Taxes and Dead Weight Losses in the Short and Long Run. (4 lectures) |
STUDY GUIDE I |
| 18-Feb-14 20-Feb-14 25-Feb-14 |
Review for Midterm Exam Midterm Exam Review of Midterm Exam |
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27-Feb-14 |
6.Market
Structure:
Monopoly and Monopolistic Competition Why firms prefer monopolies. Cartels as escape from competition. Monopolistic competeition: competition among firms producing close but not perfect substitutes for one another, antitrust law. (3 lectures) |
BK:
11, 12, 13 |
| Spring Break No Class (March 10-14) |
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| 18-Mar-14 |
7.
Introduction
to Game Theory and Applications The classic prisoner's dilemma. Bertrand and Cournot Duopoly as game theory. Is a dilemma always a dilemma? Cournot duopoly, Team Production and the the principal agent problem: between owners and managers. (4 lectures) |
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1-April-14 |
8. Tradeoffs: Two Dimensional Models of Choice Deeper foundation for Demand and Supply. Utility functions, Indifference Curves and Budget Constraints. Deriving demand curves, income and substitution effects. Production functions, Isoquants, Isocost lines, and Efficient Production. Deciding how to produce goods and services as input prices and output level change. Robbinson Crusoe alone, The Edgeworth Box. (5 lectures) | BK: 3, 4, 6.1, 7, 8
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| 17-April-14 | 9.
Entrepreneurship:
Creative Destruction and Equilibration |
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| . | Knight, Schumpeter, Kirzner, Coase, and
Smith. Alternative conceptions of the firm, markets and
entrepreneurship. Prices as coordinating devices. (2
lectures). (WSJ
on
Innovation and Commodity Prices.) |
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| 24-April-14 | 13. Overview of the course and Review for the final |
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| 30-April-14 | FINAL
EXAM 3:00 - 5:00 PM |
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Grades: | |
| Midterm Exam | 45.00% | |
| Final Exam | 55.00% | |
| Extra
Credit from Homework |
3.00% |
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| Marginal extra credit for extraordinary class participation (up to 2% bonus) |
