Department of Economics

ADVANCED MICROECONOMICS - Course Outline and Reading Guide

Students who have solid background and are not adverse to a mathematical approach may use H.R. Varian, Microeconomic Analysis, Norton, 3rd edition, 1992. An alternative advanced text emphasizing game theory is David M. Kreps, A Course in Microeconomic Theory, Princeton University Press, 1990. Even more advanced texts includes:

Andreu Mas-Colell, Michael D. Whinston and Jerry R. Green, 1995. Microeconomics Theory. Oxford University Press. (An advanced textbook in microeconomics theory.)

However, the following texts are referred to frequently.

Geoffery A. Jehle & Philip J. Reny (2001). Advanced Microeconomic Theory (2nd Edition). Boston: Addison-Wesley. (JR)

Y.-K. Ng, Mesoeconomics: A Micro-Macro Analysis, London: Harvester, 1986.

A simpler alternative to JR is:

David G. Luenberger (1995). Microeconomic Theory. McGraw-Hill. (DL)

The following topics are provided for reading. The lectures may not cover all topics and may not proceed in the same order.:

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JR: Ch. A1 & A2

DL: Appendix C

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Mainly on consumer preferences and the existence of utility functions, properties of demand functions, the composite commodity theorem, and the Slutsky equation.

DL: Ch. 4

JR: Ch. 1, 2, 3.

Ng, Welfare Economics, App.1B.

H.A.J. Green, Consumer Theory, Chapters 1-7

P.R.G. Layard and A.A. Walters, Microeconomic Theory, McGraw-Hill, Sections 5.1 and 5.2

Varian, Chapters 7-9

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R.H. Frank, “If Homo Economicus could choose his own utility function, would he want one with a conscience?” American Economic Review, September 1987,