Consumers make choices over bundles of goods. Consumer theory models the way in which these choices are made. A good is simply a product — such as apples or bananas. A good may be specified in terms of time — such as

There are two countries, Home (H) and Foreign (F). There are two goods, units of wine (Qw) and cheese (Qc). Suppose there is one factor of production, labour, which is available in amounts L and L

All the models considered so far have one thing in common. There is no uncertainty. This is a very restrictive assumption. Often in economic situations there is less than perfect information. Both production and consumption often involve unknown variables that affect the profits and utility of the agents

A consumption externality is a situation where a consumer cares directly about another agent’s consumption or production of a particular good. An externality can be positive or negative: 1. Negative: Loud mobile phone use in public places. 2. Positive: Pipe smoking in enclosed public places

In the last lecture two concepts were introduced: Pareto efficiency and general equilibrium. How do they relate? Theorem: The first welfare theorem states that every general equilibrium involves a Pareto efficient llocation

Endowments and Allocations Consider first the case of a pure exchange economy. (One with no production). Suppose there are two consumers, A and B, in a two good economy. A starts with an endowment of ωA =

Production — Oligopoly 1 Cournot Duopoly Suppose there are two firms in an industry. Their strategy spaces are quantities. Their payoffs are profits. Industry demand is given by the inverse demand function, P(Q), where industry production is Q = q1 + q2. They

Production — Games 1 Monopolistic Competition Monopolistic competition arises when there are a large number of price-setting firms in an industry with free entry. Suppose there are n firms. In the short run, each firm faces an nth of the market demand curve

1. Who am I? Chris Wallace, Lecturer at the Department of Economics, Oxford University and Fellow in Economics at Trinity College. 2. What do I do? Teach economics and research in the field of game theory. 3. Who are you? First year students taking either the Philosophy, Politics and Economics (PPE) degree

第1篇 导言 第1章 宏观经济学的科学 第2章 宏观经济学的数据 第2篇 长期中的经济 第3章 国民收人：从哪里来和到哪里去 第4章 经济增长I 第5章 经济增长Ⅱ 第6章 失业 第7章 货币与通货膨胀 第8章 开放经济 第3篇 短期中的经济 第9章 经济波动导言 第10章 总需求1 第11章 总需求Ⅱ 第12章 开放经济中的总需求 第13章 总供给 第4篇 宏观经济政策争论 第14章 稳定政策 第15章 政府债务与预算赤字 第5篇 再论支撑宏观经济学的微观经济学 第16章 消费 第17章 投资 第18章 货币供给与货币需求 第19章 经济波动理论的进展