Course at a Glance
The second semester of Microeconomic Theory is meant to expose students to a variety of formal models that depart from the standard assumptions of perfect competition. These market imperfections include firms with market power, agents with limited information, actions that impose externalities on others, and uncertainty in choices. We will particularly focus on inefficiencies created in these scenarios, and potential methods of and pitfalls in correcting them.
This course will also expand the student's ability to formally model economic choices. We will reinforce mathematical skills in constrained optimization, and provide practice interpreting the results of models. Ultimately, the goal is to foster critical thinking about economic models. This is to say, the student should be able to recognize differences in the assumptions of various models, evaluate the appropriateness of the assumptions, and determine how they will affect the model's predictions.
From their experience in this class, students should become able to: