ECON 6030 - Advanced Price Theory

In this course, we use optimization techniques (with simple 2-variable functions) and comparative static analysis to derive the competitive demand and supply concepts in microeconomic theory. In the first section, we derive the market demand curve from the consumer’s utility-maximization problem. In addition, we derive the properties that a demand curve should satisfy, and examine related topics such as indirect utility functions, consumer surplus, and the Slutsky equation, In the second section, we derive the relationship between production concepts and related cost concepts from the cost-minimization problem, and then derive firm’s supply decision from the profit-maximization problem. In the third section, we examine several models of price determination including perfect competition, monopoly, and standard game-theoretic oligopoly models.

Prerequisites/Corequisites: Prerequisite: MATH 1220 or MATH 1700 or ECON 5040.

Credits: 3 hours

Notes: Open to graduate students only.
When Offered: Fall