2940308 Microeconomic Theory II
(Section 3) Semester 2/2005

This class is the continuation of Microeconomic Theory I. It can be divided into four main topics:
  • Topics in Consumers' Theory: Intertemporal consumption and decision under uncertainty
  • General Equilibrium and Welfare Economics
  • Game Theory and Its Applications
  • Market Failure: Asymmetric information, externalities and public goods

There are two lectures each week on TU and TH 08.30-10.00 MAHIT611. Tutorial will be held every Friday 08.00-10.00 MAHIT710 and it is compulsory for all students. Students must hand in the assignments for grading.

Students should note that lecture cannot cover everything and it is students' responsibility to read the required textbooks so that they are well prepared for their exams. Any fraudulent act or cheating will result in an automatic F  grade and further disciplinary actions will follow which may result in a suspension or expulsion.

 
 
Course Syllabus

To download the course syllabus in PDF format, click here.
 
 
Textbooks

BINGER, Brian and Elizabeth HOFFMAN Microeconomics with Calculus (2nd edition), Addison-Wesley, 1998 (HB171.5 B52)

**NICHOLSON, Walter Microeconomic Theory: Basic Principles and Extensions (9th edition), Thomson, 2005 (HB171.5 N5)

PINDYCK, Robert and Daniel RUBINFIELD Microeconomics (6th edition), Prentice Hall, 2005
(HB171.5 P5)

**VARIAN, Hal Intermediate Microeconomics: A Modern Approach (5th edition), Norton, 1999 (HB171.5 V29)
 
 
Week 1 Review of Microeconomic Theory I

Class material:
[Lecture 1]
[Review Exercise 1] - for your own revision. No need to submit.
[Review Exercise 2] - for your own revision. No need to submit.

Reading: Varian Ch. 8, 9; Nicholson Ch. 5
 
 
Week 2 Intertemporal Consumption

Class material:
[Lecture 2-1] Two-period consumption model
[Lecture 2-2] Present value and its applications. Click here for the handout format.

Reading: Binger and Hoffman Ch. 18.1-18.4; Varian Ch. 10

Tutorial:
[Assignment 1] - due on 15th November no later than 4.00 PM at room 402 Economics Building. Students are asked to do the questions no. 5, 7, 10, 11, and 12.
 
 
Week 3 Decisions Under Uncertainty

Class material:
[Lecture 3-1] Expected utility
[Lecture 3-2] Risks and returns
Click here to download the entire Lecture 3 slides.
For the entire Lecture 3 in the handout format, click here.


[Review Exercise 3] - for your own revision. No need to submit.

Reading: Varian Ch. 12; Pindyck and Rubinfeld Ch. 5; Nicholson Ch. 18

Mock Exam: Click here for the questions and solutions.

Tutorial:
[Assignment 2] - will be distributed on Friday 18th during tutorial. The due date SHOULD be 1st of December but please wait for the confirmation during lecture.
 
 
Week 4 Chulalongkorn University Academic Exhibition

No lecture and tutorial this week.
 
 
Week 5-7 General Equilibrium

Class material:
[Lecture 5-1] Pure exchange
[Lecture 5-2] General equilibrium with production
[Review Exercise 4] - for your own revision. No need to submit.

Reading: Varian Ch. 29, 30; Nicholson Ch. 12; Pindyck and Rubinfeld Ch. 16

Tutorial:
[Assignment 3] - due date Thu 16th Dec in class.
 
 
Week 8 Mid Term Examination

Exam date: Mon 19th Dec 13.00-16.00
Venue: TBA. See the faculty's notice board

There will be 9 questions in total. Students are asked to answer ALL of them. This is a closed book-no notes exam. No calculation is allowed. Students have THREE hours to complete the exam paper.
 
 
Week 9 Thailand Universities Sports Event

No lecture and tutorial this week.
 
 
Week 10 Welfare Economics

Class material:
[Lecture 6]
[Review Exercise 5] - for your own revision. No need to submit.

Reading: Varian Ch. 31; Nicholson Ch. 12

Tutorial:
[Assignment 3]
 
 
Week 11 Game Theory and Its Applications

Class material:
[Lecture 7]
[Review Exercise 6] - for your own revision. No need to submit.

Reading: Pindyck and Rubinfeld Ch. 13

Tutorial:
[Assignment 4]
 
 
Week 12 Market Failure I: Information

Class material:
[Lecture 8] Economics of Information
[Review Exercise 7] - for your own revision. No need to submit.

Reading: Varian Ch. 36; Nicholson Ch. 19; Pindyck and Rubinfeld Ch. 17
 
 
Week 13 Market Failure II: Externalities

Class material:
[Lecture 9] Externalities
[Review Exercise 8] - for your own revision. No need to submit.

Reading: Varian Ch. 32; Nicholson Ch. 20; Pindyck and Rubinfeld Ch. 18
 
 
Week 14 Market Failure II: Public Goods

Class material:
[Lecture 10] Public Goods
[Review Exercise 9] - for your own revision. No need to submit.

Reading: Varian Ch. 35; Nicholson Ch. 20; Pindyck and Rubinfeld Ch. 18