Microeconomics:

1. Consumer Theory
a. Utility Function- Express and Draw IC
b. Properties of IC ( Monotonicity and Convexity)
c. Maximisation problem: Utility Max Lagrangrian/Budget
Constraint
d. Optimal Bundle: Marshaillian
e. Giffen Good: Field Experiment *
f. Marshallian & Hicksian
g. Budget Constraint ( Rat) *

2. Theory of the Firm: Production Function ( Cost Minimisation)

a. Factor Demand ( K* and L*)
b. Cost Function
c. Profit Maximisation Problem
3. Welfare ( Use integrals)
a. Consumer Surplus ( Mashaillian Demand)
b. Compensating variation ( Hicksian Demand )
c. Decision under certainty
d. Degree of risk aversion ( Averse, Neutral, Lving)
e. Coefficient of Absolute Risk Aversion
f. Coefficient RRA
g. Implied Minimum Coefficient of Absolute Relative Risk
h. EU ( gamble/no gamble)
4. Game Theory
a. Model as strategic form
b. Dominant/Dominated
c. Pure/Mixed NE
d. BR
e. Check NE
f. Electoral competition Model BR
g. Betrand game ( P=MC)
h. Cournot game
5. Auction
a. Types of auction: 1st ,2nd,Dutch,English,NZ*
b. Best bidding strategy
6.
a.
b.
c.
d.

Extensive Form Game

Draw game tree
Find SPNE
Relationship betweem SPNE AND NE
Find 1 that is not SPNE

7. Economics of Information
a. Adverse Selection ( tute)
b. Moral Hazard: Principal- Agent Model