This course is mandatory for the Master of Science in Economics and the Master of Science in Public Economics.

Module Description

The course aims to provide an advanced introduction to fundamental concepts in Microeconomics. It focuses on the conditions under which choices can be represented by utility functions and introduces the concept of utility maximization, along with its dual problem, expenditure minimization. This is followed by an introduction to welfare economics. The course then covers market exchange and market failures resulting from externalities and public goods. Finally, we explore decision-making under uncertainty, which leads to an understanding of the role of information asymmetries in markets.

Language: English

Examination form: Exam

Contact: Anja Prummer and Ekaterina Gorbunova, ls-mikrooekonomie@wiwiss.fu-berlin.de 

 

Course Overview 

1. Classical Demand Theory (Choice, Utility Maximization, Expenditure Minimization, Welfare)
2. Exchange
3. Public Goods
4. Externalities
5. Decisions under Uncertainty
6. Information Asymmetries

 

Literature

• Jehle, G. and P.J. Reny. Advanced Microeconomic Theory. Prentice Hall. 3rd edition (2011)
• Kreps, D. A Course in Microeconomic Theory. Princeton University Press. (1990)
• MacLeod, W.B. Advanced Microeconomics for Contract, Institutional and Organizational Economics, MIT Press (2022)
• Mas-Colell, A., M. Whinston und J. Green: Microeconomic Theory, Oxford: Oxford University Press (1995)
• Salanie, B. The microeconomics or market failures, MIT Press (2000)