Graduate Level Advanced (Managerial) Microeconomics
Department of Applied Economics, Guanghua School of Management, Peking University

2009 Class Resource Site

Instructor: Benjamin Chiao
Teaching Assistant: Tristan Du <duzhongming@gsm.pku.edu.cn>

Course Syllabus: [Download PDF]

Lecture 13 (Dec 23, 2009): Risk and Uncertainy II

1. Slides: afterclass inclass

2. HW
Required: 6.C.1, 6.C.3, 6.C.6, 6.C.7, 6.C.8, 6.C.10, 6.C.15, 6.D.1, 6.D.4
Optional: 6.C.2, 6.C.4, 6.C.11

3. Final Exam: There will be one to two exam questions from Ch. 6, one question on general equilibrium, one question on definitions, theorem statements. There might be one question on materials covered after the mid-term.

4. Online discussion: Discuss materials related to this lecture.

Lecture 12 (Dec 16, 2009): Public Goods mini lecture (in memory of Paul Samuelson), and Risk and Uncertainy

1. Slides: inclass afterclass

2. HW
Required: Q1 Prove footnote 2 of Ch. 6. Q2 6.B.1, Q3 6.B.2, Q4 6.B.4 Q5 6.B.7 Q6 Use one-page to argue against the argument that if bullets for national defense purpose can be regarded as public goods, then apples (for national defense purpose) can also be regarded as public goods. Bonus will be given if you also comment on the idea that "apples can be viewed as public goods".
Optional: 6.B.3

3. Submit one debate proposition together with your homework.

4. Online discussion: Discuss materials related to this lecture.

Lecture 11 (Dec 9, 2009): General Equilibrium Examples and Methods of Experiments

1. Slides: method_of_experiment GE_examples

2. HW
Required: 1. Discuss how the two designs on p.20 of the method of experiments slides solve some of the internat validity threats. Note that the O's represent observations. 2. Find a general equilibrium question anywhere on earth you can solve and solve it.

3. Online discussion: Discuss materials related to this class.

Lecture 10 (Dec 3, 2009): General Equilibrium

1. Slides: afterclass

2. Required

Write a two-page critique on i) Vernon Smith (1962). "An Experimental Study of Competitive Market Behavior", Journal of Politial Economy or on ii) General Equilibrium

Optional:

16.C.1, 16.C.3

4. Online discussion: Discuss materials related to the lecture notes or the experiment.

5. Cash will be paid to you in lecture 10.

Lecture 9 (Nov 18, 2009): Classical Demand Theory III

1. Slides: reorganized_inclass

Lecture 8 (Nov 11, 2009): Classical Demand Theory II

1. Slides: beforeclass inclass afterclass translation graphs

2. Required

3.G.2, 3.G.14, 3.G.15

Optional: #1 3.G.1 #2 Write a one page critique on Cheung's claim that Giffen goods can't exist or discuss ceteris paribus.

4. Online discussion: Discuss 1) Cheung's claim that Giffen goods can't exist and 2) ceteris paribus.

Lecture 7 (Nov 4, 2009): Classical Demand Theory I

1. Slides: beforeclass inclass afterclass translation

2. Homework

Required Questions

3.b.1
3.c.6
3.d.4
3.d.5
3.d.7
3.e.1

Optional Questions

3.c.1
3.e.7

3. Online discussion: Raise any interesting questions/problems/issues related to materials in lecture 7.

Lecture 6 (Oct 28, 2009): Consumers

1. Slides: beforeclass inclass afterclass. Translations: L6_translation For written exam purposes, you do not need to read MWG Ch. 2 (except things explicitly referred to in the slides) if you understood the materials in the lecture and the final lecture slides.

2. Homework

Required Questions
Q1 MWG EX. 2.F.1
Q2 MWG EX. 2.F.2
Q3 MWG EX. 2.F.3
Q4 MWG EX. 2.F.12
Q5 MWG EX. 2.F.14

3. Online discussion: Raise any interesting questions/problems/issues related to materials in lecture 6.

Lecture 5 (Oct 21, 2009): Firms II

0. Lectures notes are here.

1. Homework: Due Lecture 6

Q1 If a and b are in the real line and the metric is the Euclidean distance function, is the open interval (a,b) an open set? Prove each of your claims.
Q2 MWG 5.C.3
Q3 MWG 5.C.4
Q4 MWG 5.C.5
Q5 MWG 5.C.9
Q6 MWG 5.C.10
Q7 MWG 5.D.1
Q8 MWG 5.E.3

2. MWG Ch. 5 (except Appendix A) is required. You must read it.

3. Online discussion: Raise any interesting questions/problems/issues related to materials in lecture 5.

Lecture 4 (Oct 14, 2009): Firms

0. Lectures notes are here. The only cover the first half; the rest will be covered in the next lecture.

1. Homework: Due Lecture 5

Q1 MWG 5.B.1
Q2 MWG 5.B.2
Q3 MWG 5.B.3
Q4 MWG 5.B.6
Q5 MWG 5.C.1
Q6 MWG 5.C.2

2. MWG Ch. 5 (except Appendix A) is required. You must read it.

3. Online discussion: Raise any interesting questions/problems/issues related to materials in lecture 4.

Lecture 3 (Sep 30, 2009): Social Choices

0. Homework: Due Lecture 4.
Q1 MWG 21.B.1
Q2 MWG 21.B.2
Q3 MWG 21.C.1
Q4 MWG 21.C.2
Q5 In class, we did a simulation of birds flying using NETLOGO (downloadable here), which eventually some birds appeared to be leading the other birds. However, according to the developers of this software module, ‘the flocks that appear in this model are not created or led in any way by special leader birds. Rather, each bird is following exactly the same set of rules: "alignment", "separation", and "cohesion". "Alignment" means that a bird tends to turn so that it is moving in the same direction that nearby birds are moving. "Separation" means that a bird will turn to avoid another bird which gets too close. "Cohesion" means that a bird will move towards other nearby birds (unless another bird is too close). When two birds are too close, the "separation" rule overrides the other two, which are deactivated until the minimum separation is achieved.’ How would you compare this with Arrow’s Impossibility Theorem?

1. Lecture slides are accessible here.(Updated 10/1)

2. Correction it's NOT "BEFORE class, read MWG Ch. 21 A to C.", it should be "BEFORE class, read MWG Ch. 21 A to C IF YOU WANT. If you understood the materials in the lecture notes of this particular week, the relevant class discussion and homework problems, you can safely skip reading Ch. 21 for the purpose of homeworks and exams.Sections 21.D and 21.E. will not be in exams. "

3. Online discussion: Raise any interesting questions/problems/issues related to materials in lecture 3.

Lecture 2 (Sep 23, 2009): Preference and Individual Choices

1. Lecture slides are accessible here and here (for a definition tutorial).

2. If you understood the materials in the lecture notes of this particular week, the relevant class discussion and homework problems, you can safely skip reading Ch. 1 of Mas-Colell, Whinston and Green (1995) for the purpose of homeworks and exams.

3. See Lecture notes for HW 1.

Online Discussion: Continue the debate from last week: Debate on why or why not economics should be used for problems in other disciplines.

Lecture 1 (Sep 16, 2009): Overview and Philosophy of Science

Lecture slides are accessible here

Homework 1: Due Sep 23, 2009 9am. No late submissions. As a group, use Chinese or English to write a two-page logically consistent critique of materials discussed in class. Please pick one or two points and develope them in depth rather than touching every issue superficially.

Online Discussion: Debate on why or why not economics should be used for problems in other disciplines.