Unit 1. Introduction: Preliminaries. The basics of Supply and Demand.
Unit 2. Household Economics: Preferences, utility function, budgetary restriction, consumer choice, individual demand, duality in consumer theory, income and substitution effects, aggregate demand. Household Production and Consumption. Labor supply.
Unit 3. Choice under uncertainty
Unit 4. Producer and Cost Theory: Production function. Cost minimization: Inputs demand, cost function. Profit maximization: Supply function.
Unit 5. Competitive Markets: Equilibrium and welfare.
Unit 6. Strategic Interaction and Market Power: Monopoly, Nash equilibrium, equilibrium in mixed strategies, Oligopoly models: cournot, stackelberg equilibrium.
Unit 7. Markets with Asymmetric Information: Hidden characteristics: Adverse Selection. Hidden characteristics: Signaling. Hidden actions: Moral Hazard.