## Textbook

Pindyck, Robert S., and Daniel L. Rubinfeld. *Microeconomics*. 6th ed. Upper Saddle River, NJ: Pearson Prentice Hall, 2004. ISBN: 9780130084613.

The book is also available in digital format from CourseSmart.

## Readings by Session

The readings under the two formats are given below. Students are expected to have read the relevant chapters ahead of time.

### Format 1: Lecture-recitation

L = Lecture and R = Recitation

SES # | TOPICS | READINGS |
---|---|---|

L1 | What is economics? | Chapter 1 |

R1 | Supply-demand analysis | Chapter 2 |

L2 | Comparative statics | |

L3 | Dynamic analysis | |

R2 | Utility, revealed preference | Chapter 3 |

L4 | Optimization, duality | |

L5 | Demand curves | Chapter 4 |

R3 | Engle curves | |

L6 | Risk and uncertainty | Chapter 5 |

R4 | Risky behavior, examples | |

L7 | Production | Chapter 6 |

L8 | Input use | |

R5 | Review of chapters 1-5 | Chapters 1 to 5 |

L9 | Cost curves | Chapter 7 |

R6 | Scale and cost | |

L10 | Profit maximization | Chapter 8 |

L11 | Entry and exit | |

R7 | Competitive markets | Chapter 9 |

L12 | Examples | |

L13 | Competitive markets (cont.) | |

R8 | Economic "surplus" | Chapter 16 |

L14 | Efficiency of markets | |

L15 | Market structure | |

R9 | Review of chapters 6-9, 16 | Chapters 6-9, 16 |

L16 | Monopoly power | Chapter 10 |

L17 | Monopsony – regulation | |

L18 | Pricing power | Chapter 11 |

L19 | Pricing power (cont.) | |

R10 | Monopoly-pricing power | |

L20 | Oligopoly | Chapters 12-13 |

L21 | Monopolistic competition | |

L22 | Competitive strategy | |

L23 | Factor markets | Chapter 14 |

R11 | Factor-labor markets | |

L24 | Labor-land markets | |

L25 | Capital markets | Chapter 15 |

R12 | Review of chapters 10-15, 17-18 | Chapters 10-15, 17-18 |

L26 | Insurance-risk markets | Chapter 17 |

L27 | Government | Chapter 18 |

### Format 2: Discussion Sections

D = Discussion and Q = Question and Answer session

SES # | TOPICS | READINGS |
---|---|---|

D1 | Overview: themes, types of markets, economic measurement, economic analysis | Chapter 1 |

D2 | The basics of supply and demand | Chapter 2 |

D3 | Elasticities of demand | Chapter 2 |

D4 | Price elasticity of supply; consumer preferences | Chapters 2-3 |

D5 | Deriving MRS from utility function, budget constraints, and interior solution of optimization | Chapter 3 |

D6 | Optimization, revealed preference, and deriving individual demand | Chapters 3-4 |

D7 | Substitution and income effects, individual and market demand, consumer surplus | Chapter 4 |

D8 | Irish potato famine, network externalities, and uncertainty | Chapters 4-5 |

D9 | Preference toward risk, risk premium, indifference curves, and reducing risk | Chapter 5 |

D10 | Insurance and production functions | Chapters 5-6 |

D11 | Production functions | Chapter 6 |

D12 | Production functions and cost of production | Chapters 6-7 |

Q1 | Review of chapters 1-5 | |

D13 | Cost functions | Chapter 7 |

D14 | The cost of production and profit maximization | Chapters 7-8 |

D15 | Short run and long run supply | Chapter 8 |

D16 | Long run supply and the analysis of competitive markets | Chapters 8-9 |

D17 | Supply restrictions, tax, and subsidy | Chapter 9 |

D18 | Tax, subsidy, and general equilibrium | Chapters 9 and 16 |

D19 | Efficiency in exchange, equity and efficiency, and efficiency in production | Chapter 16 |

D20 | Production possibilities frontier and output market efficiency | Chapter 16 |

D21 | Why markets fail | Chapter 16 |

Q2 | Review of chapters 6-9, 16 | |

D22 | Monopoly | Chapter 10 |

D23 | Monopoly and monopsony | Chapter 10 |

D24 | Monopoly and monopsony (cont.) | Chapters 10-11 |

D25 | Pricing with market power | Chapter 11 |

D26 | Pricing and monopolistic competition | Chapters 11-12 |

D27 | Game theory and oligopoly | Chapters 12-13 |

D28 | Oligopoly | Chapters 12-13 |

D29 | Strategic games | Chapters 12-13 |

D30 | Dominant firm model and factor market | Chapters 12-14 |

D31 | Factor market | Chapter 14 |

D32 | Investment, savings, time, and capital markets | Chapter 15 |

D33 | Asymmetric information | Chapter 17 |

D34 | Externalities, market failure and government | Chapters 17-18 |

D35 | Public goods and review of chapters 10-15, 17-18 |