Recommended Course Outline for Microeconomic Theory
This recommended course outline is an ordered list of topics and lecture videos that I follow in my microeconomic theory courses. Watching lecture videos in my channel with a proper order is key for effective learning because the concepts in each video is built over the ones that I introduce in previous videos. Depending on your interest and objective, you may prefer to skip some of the videos. But be mindful of the order of watch.
To make navigation of my channel more user-friendly I’ve tagged each video in this list by“Intermediate” or “Advanced.” Most of the videos require some background in microeconomics (e.g., introduction to microeconomics). If you want in depth understanding of the concepts of Microeconomic theory or a second-year college student, then you should watch videos that are tagged “Intermediate.” If you want some extra challenge, a fourth-year college student, or a Master student, then you can watch all the videos on this list, including the ones that are tagged “Advanced.”
If you are a PhD level student, then the videos on this list would be perfect resources for refreshing your knowledge or catching up with the rest of the class.
Course Description and Objective
The purpose of this course is to introduce students to important topics in modern microeconomic theory, at an advanced and rigorous level. These topics include consumer behavior, the theory of the firm, static and dynamic models of perfect and imperfect competition, general equilibrium, social welfare, expected utility and risk aversion.
Suggested Textbooks
Lecture Notes in Microeconomic Theory, The Economic Agent, Ariel Rubinstein
Microeconomic Theory: Basic Principles and Extensions, Nicholson, Walter, and Christopher M. Snyder.
Advanced Microeconomic Theory, Geoffrey A. Jehle and Philip J. Reny (JR)
Course Outline
TOPIC 1: MATHEMATICS AND LOGIC REVIEWS (Intermediate-Advanced)
-
BASIC CONCEPTS IN MATHEMATICS (Intermediate)
1. Part 1 (Intermediate)
2. Part 2 (Intermediate)
3. Part 3 (Intermediate)
-
PROPOSITIONAL LOGIC (Intermediate-Advanced)
1. Section 1 (Intermediate)
2. Section 2 (Intermediate)
3. Section 2 - Example 2 (Intermediate)
4. Section 2 - Example 3 (Intermediate)
5. Section 2 - Example 4 (Intermediate)
6. Section 2 - Example 5 (Intermediate)
7. Section 3 (Intermediate)
8. Section 3 - Example 2 (Intermediate)
9. Section 3 - Example 3 (Intermediate)
10. Section 4 (Intermediate)
11. Section 4 - Example 2 (Intermediate)
12. Section 5 (Intermediate)
13. Section 5 - Example 2 (Intermediate)
14. Section 5 Theorems (Intermediate)
15. Section 5 Theorems - Example 2 (Intermediate)
16. Section 6 (Intermediate)
17. Section 6 - Example 2 (Intermediate)
18. Section 7 (Intermediate)
19. Section 7 - Example 2 (Intermediate)
20. Section 7 - Example 3 (Intermediate)
21. Section 7 - Example 4 (Intermediate)
22. Section 8 (Intermediate)
23. Section 8 - Example 2 (Intermediate)
24. Section 8 - Example 3 (Intermediate)
25. Review Questions - Part 1 (Intermediate)
26. Review Questions - Part 2 (Advanced)
27. Review Questions - Part 3 (Advanced)
28. Review Questions - Part 4 (Advanced)
29. Review Questions - Part 5 (Advanced)
30. Review Questions - Part 6 (Advanced)
31. Review Questions - Part 7 (Advanced)
-
OPTIMIZATION (Intermediate)
1. Part 1 (Intermediate)
2. Part 2 (Intermediate)
3. Part 3 (Intermediate)
-
PROBABILITY (Intermediate)
1. Probability (Intermediate)
-
TOPOLOGY (Intermediate-Advanced)
1. Part 1 (Intermediate-Advanced)
2. Part 2 (Intermediate-Advanced)
3. Part 3 (Intermediate-Advanced)
4. Part 4 (Intermediate-Advanced)
TOPIC 2: CHOICE AND PREFERENCES (Intermediate - Advanced)
1. Economics as a Study of Incentives and Choice (Intermediate)
2. Introduction to Choice and Preferences (Intermediate)
3. Preferences (Intermediate - Advanced)
4. Utility Representation (Intermediate - Advanced)
5. Choice behaviour, Choice Functions, and Condition Alpha (Advanced)
6. "AS IF" approach & "Rational" Behavior (Intermediate)
7. What is Alternative? (Intermediate)
8. Lexicographic Preferences: Reflexive and Complete Relation (Advanced)
9. Lexicographic Preferences: Transitive Binary Relation (Advanced)
10. Continuity of Preferences: Lexicographic Preferences (Advanced)
11. How to Prove or Disprove a Binary Relation is a Preference Relation: Example 1 (Advanced)
12. How to Prove or Disprove a Binary Relation is a Preference Relation: Example 1 continued (Advanced)
13. How to Prove or Disprove a Binary Relation is a Preference Relation: Example 2 (Advanced)
14. How to Prove if a Preference Relation can be Represented by a Utility Function? (Advanced)
15. How to Prove if a Choice Behavior is Consistent with Condition Alpha? (Advanced)
TOPIC 3: UTILITY FUNCTIONS (Intermediate - Advanced)
1. Indifference Curves (Intermediate)
2. Marginal Utility (Intermediate)
3. Marginal Rate of Substitution (MRS) and Convexity of Preferences (Intermediate)
4. How to Draw Indifference Curves and Calculate Marginal Rate of Substitution: Examples (Intermediate)
5. How to Draw Indifference Curves of a Preference Relation: Example 1 (Advanced)
6. How to Draw Indifference Curves of a Preference Relation: Example 2 (Advanced)
7. How to Draw Indifference Curves of Min Function, U=min{ax+by,cx+dy} (Intermediate - Advanced)
8. How to Draw Indifference Curves of a Max Funtion, U=max{ax+by,cx+dy} (Intermediate - Advanced)
TOPIC 4: UTILITY MAXIMIZATION AND EXPENDITURE MINIMIZATION (Intermediate - Advanced)
1. Utility Maximization and Choice (Intermediate)
2. Mathematical Solution for Utility Maximization Problem with n Variables; The Lagrangian (Advanced)
3. Mathematical Solution for Utility Maximization Problem with n Variables; Solving Lagrangian (Advanced)
4. Numerical Examples for Utility Maximization: The Case of Cobb-Douglass Utility (Intermediate)
5. Substitution Method for Utility Maximization Problem: The Case of Cobb-Douglass Utility (Intermediate)
6. Utility Maximization Problem with Quasi-Linear Utility Functions (Intermediate)
7. Utility Maximization Problem with Perfect Complements - Part 1 (Intermediate)
8. Utility Maximization Problem with Perfect Complements - Part 2 (Intermediate)
9. Utility Maximization Problem with Linear Utilities (Perfect Substitutes) (Intermediate)
10. Indirect Utility Functions and Lump-Sum Principle (Advanced)
11. Envelope Theorem and Roy's Identity - Part 1 (Advanced)
12. Envelope Theorem and Roy's Identity - Part 2 (Advanced)
13. Expenditure Function (Advanced)
14. Expenditure Functions: The Intuition and its Relation to Indirect Utility Functions (Advanced)
TOPIC 5: DEMAND THEORY (Intermediate - Advanced)
1. Demand Functions: Marshallian vs Hicksian Demands (Intermediate)
2. Demand Curves: Marshallian vs Hicksian (Compensated) Demand Curves (Intermediate - Advanced)
3. Showing Equivalence of Marshallian and Hicksian Demand Curves: A Numerical Example (Advanced)
4. Finding Income and Substitution Effects: Slutsky Decomposition Method (Intermediate)
5. Finding Income and Substitution Effects: A Numerical Example for Slutsky Decomposition Method (Intermediate)
6. Finding Income and Substitution Effects: Hicks Decomposition Method (Advanced)
7. Shephard's Lemma and Slutsky Equation (Advanced)
8. Consumer Surplus: Compensating and Equivalence Variations (Advanced)
9. A Numerical Example for Marshallian and Hicksian Demands (Intermediate - Advanced)
10. A Numerical Example for Slutsky Decomposition (Intermediate)
11. A Numerical Example for Hicks Decomposition (Advanced)
TOPIC 6: UNCERTAINTY (Intermediate - Advanced)
1. Introduction to Uncertainty and Risk (Intermediate)
2. Risk Preferences (Intermediate)
3. Expected Utility Theory (Advanced)
4. A very Short Review of Expected Utility Theory (Intermediate)
5. Expected Utility Theory at Work: A Numerical Example (Intermediate)
6. Expected Utility Theory at Work: Risky Investment Problem 1 (Intermediate)
7. Expected Utility Theory at Work: Risky Investment Problem 2 (Intermediate)
8. Expected Utility Theory at Work: Risky Investment Problem 3 (Intermediate)
9. First Order Stochastic Dominance: Definition (Advanced)
10. First Order Stochastic Dominance: Theorem (Advanced)
11. Risk Aversion and Concavity (Advanced)
12. Certainty Equivalence and Risk Premium (Advanced)
13. Risk-Aversion, Risk-Loving and Certainty Equivalence: An Example (Advanced)
TOPIC 7: PRODUCTION (Intermediate - Advanced)
1. Introduction to Producer Theory (Intermediate)
2. Production Functions (Intermediate)
3. Production Functions: Returns to Scale (Intermediate)
4. Cost Functions (Intermediate)
5. Cost Minimization Problem (Intermediate)
6. Cost Minimization Problem: Numerical Examples (Intermediate)
7. Total Cost, Average Cost vs Marginal Cost (Intermediate)
8. Profit Maximization (Intermediate)
9. Producer Theory at Work: A Numerical Example 1 (Intermediate)
10. Producer Theory Under Risk: A Numerical Example (Intermediate - Advanced)
11. Producer Theory at Work: A Numerical Example 2 (Intermediate)
12. Leontief Technology: Optimal Inputs, Cost, Output and Profit: An Example (Intermediate - Advanced)
TOPIC 8: PARTIAL EQUILIBRIUM (Intermediate)
1. Perfectly Competitive Markets and Partial Equilibrium Analysis: Introduction (Intermediate)
2. Market Demand or Aggregate Demand (Intermediate)
3. Demand Elasticity (Intermediate)
4. Perfectly Competitive Markets (Intermediate)
5. Short Term Market Supply (Intermediate)
6. Perfectly Competitive Equilibrium Price (Intermediate)
7. Long-Run Equilibrium of Perfectly Competitive Markets and Zero Economic Profit (Intermediate)
8. Long-Run Supply Curves (Intermediate)
9. Welfare Analysis: Consumer and Producer Surpluses and Deadweight Loss (Intermediate)
10. Partial Equilibrium Analysis at Play: A Numerical Example 1 (Intermediate)
11. Partial Equilibrium Analysis at Play: A Numerical Example 2 (Elasticity and Tax) (Intermediate)
12. Welfare Analysis Under Consumption Tax (Intermediate)
13. Welfare Analysis in Labor Market: The Case of Minimum Wage (Intermediate)
14. Welfare Implications of Subsidy in Perfectly Competitive Market: An Example (Intermediate)
15. Solving for Long-Run Competitive Market Price and Quantity: An Example (Intermediate)
TOPIC 9: GENERAL EQUILIBRIUM (Intermediate - Advanced)
1. General Equilibrium: Introduction to Pure Exchange Economy (Intermediate - Advanced)
2. Edgeworth Box and Feasible Allocations (Intermediate - Advanced)
3. Trade in Pure Exchange Economy: Some Intuition (Intermediate - Advanced)
4. Pareto Efficiency (Optimality) (Intermediate - Advanced)
5. How to Find Pareto Efficient Allocations and Contract Curve (Intermediate - Advanced)
6. How to Find Pareto Efficient Allocations and Contract Curve: Numerical Examples (Intermediate - Advanced)
7. How to Find Core Allocations? (Intermediate - Advanced)
8. How to Calculate Equilibrium Prices in a Pure Exchange Economy? (Advanced)
9. General Equilibrium with Production: How to Calculate Equilibrium Prices? (Advanced)
10. Solving Walrasian Equilibrium Allocation and prices in Exchange Economy With No Production (Advanced)
11. Solving Walrasian Equilibrium Allocation and Prices in Exchange Economy With Production (Advanced)
12. First and Second Fundamental Theorem of Welfare Economics and Existence of Walrasian Equilibrium (Advanced)
TOPIC 10: IMPERFECT COMPETITION (Advanced)
1. Introduction to Game Theory - Part 1
2. Introduction to Game Theory - Part 2
3. Introduction to Game Theory - Part 3
5. Normal (Strategic) Form Representation of Games - Part 1
6. Review Examples for Normal Form Representation - Example 1
7. General Assumptions and Methodology
9. Nash Equilibrium: Formal Definition and Intuition
10. Finding Pure Strategy Nash Equilibrium in Finite Simultaneous-Move Games
11. Finding Pure Strategy Nash Equilibrium in Cournot Duopoly Game
12. Finding Pure Strategy Nash Equilibrium in Bertrand Duopoly Game
13. The Basics of Extensive Form Games
14. Extensive Form Games: The case of Ultimatum Offer Bargaining Game
15. Nash Equilibrium in Extensive Games: The Case of Entry-Deterrence Game
16. Sequential Rationality and Backward Induction
17. Backward Induction, Subgame Perfect Nash Equilibrium & Nash Equilibrium
18. Extensive Games with infinitely Many Strategies: Stackelberg Duopoly
19. A Review Example for an Extensive Game With Infinitely Many Strategies
20. Subgame Perfection for Extensive Form Games With Imperfect Information
21. Subgame Perfection for Extensive Form Games With Imperfect Information
22. An Application: Advertising and Competition
23. An Application: Cournot Competition Under Capacity Constraints
24. An Application: Dynamic Monopoly and Price Discrimination
TOPIC 11: ASYMMETRIC INFORMATION, MARKET FAILURE, HIDDEN INFORMATION (Advanced)
1. Bayesian Games and Bayesian Nash Equilibrium (BNE)
2. An Example for Bayesian Nash Equilibrium
3. An Example for Bayesian Nash Equilibrium
4. An Example for Bayesian Nash Equilibrium
5. An Example for Bayesian Nash Equilibrium: Lemons Problem
6. An Example for Bayesian Nash Equilibrium: First Price Auction
7. An Introduction to Moral Hazard and Adverse Selection Problems - Part 1
8. An Introduction to Moral Hazard and Adverse Selection Problems - Part 2
9. Hidden Information: Fundamentals of Principal - Agent Models
10. Hidden Information (Screening Problem): Part 1 - First Best Solution
11. Hidden Information (Screening Problem): Part 2 - Second Best Solution
12. Hidden Information (Screening Problem): Part 3 - Second Best Solution
13. Hidden Information (Screening Problem): Part 4 - Second Best Solution
14. Hidden Information (Screening Problem): Part 5 - Second Best Solution