Microeconomics

Preface1 The nature and scope of microeconomicsA Concepts and methodsB The economic and social framework2 The theory of the consumerA The preference orderingB The feasible setC The consumption decisionD The comparative statics of consumer behaviourE Offer curves and net demand curvesAppendix 1 : The lexicographic orderingAppendix 2 : Existence of a utility function 3 Consumer theory : dualityA The expenditure functionB The indirect utility function, Roy's identity and the Slutsky equationC Measuring the benefits of price changesD Composite commodities, separability and homotheticity 4 Further models of consumer behaviourA Revealed preferenceB The consumer as a labour supplierC Consumption and the allocation of timeD Households5 ProductionA IntroductionB The production functionB Variations in scaleC Variations in input proportionsD The multi-product case6 CostA IntroductionB Long-run cost minimizationC Short-run cost minimizationD Cost minimization with several plantsE Multi-product cost functions7 Supply and firm objectivesA Long-run profit maximizationB Short-run profit maximizationC The multi-product firmD The profit function and comparative staticsE The entrepreneurial firmF Labour managed firms8 The theory of a competitive marketA Short-run equilibriumB Stability of equilibriumC Long-run equilibrium9 MonopolyA IntroductionB Price and output determination under monopolyC Price discriminationD Monopoly welfare loss10 Input markets A Demand for inputsB MonopsonyC Unions as monopoly input suppliersD Bilateral monopoly11 Capital marketsA IntroductionB Optimal consumption over timeC The optimal investment decisionD Capital market equilibrium under certaintyE Extensions to many periods 12 General equilibrium A IntroductionB Walrasian equilibrium of a competitive economyC Existence of Walrasian equilibriumD Stability of Walrasian equilibriumE Edgeworth exchange theoryF Exchange, equilibrium and the core13 Welfare economics A IntroductionB Pareto efficient resource allocationC Welfare functions and the Pareto criterionD Pareto efficiency and competitive marketsE Distribution and marketsF Arrow's impossibility theorem14 Market failure and government failureA The causes of market failureB Instances of market failureC Theory of the second best D Government failure 15 Game theory A IntroductionB Game representation and solutions C Imperfect and incomplete informationD Mixed strategies E Cooperative bargainingF Non-cooperative bargainingG Delay and disagreement in bargaining16 Oligopoly 17 Choice under uncertaintyA IntroductionB A formalization of 'uncertainty'C Choice under uncertaintyD Properties of the utility functionE Risk aversion and indifference curvesF Measures of risk G Comparative statics under uncertainty 18 Production under uncertaintyA IntroductionB Competitive firm under uncertaintyC Production with futures markets19 Insurance, risk spreading and risk poolingA Introduction B The insurance decisionC Incomplete insurance marketsD Risk spreading: the Arrow-Lind TheoremE Risk poolingF Asymmetric information in insurance markets : adverse selectionG Asymmetric information in insurance markets : moral hazard20 Agency and contract theory 21 General equilibrium under uncertainty and incomplete marketsA Introduction B Complete markets in state contingent claimsC State contingent commoditiesD Efficiency with productionE The stock marketF Incomplete stock marketsFurther readingMathematical AppendicesA Structure of optimisation problemsB Solutions: questions and conceptsC Existence of solutionsD Local and global optimaE Uniqueness of solutionsF Interior and boundary optimaG Location of the optimum: method of LagrangeH Concave programming and the KuhnTucker conditionsI Second order conditions and comparative staticsJ The envelope theoremK Fixed point theoremsL Bayes ruleIndex

Preface
1 The nature and scope of microeconomics
A Concepts and methods
B The economic and social framework
2 The theory of the consumer
A The preference ordering
B The feasible set
C The consumption decision
D The comparative statics of consumer behaviour
E Offer curves and net demand curves
Appendix 1 : The lexicographic ordering
Appendix 2 : Existence of a utility function
3 Consumer theory : duality
A The expenditure function
B The indirect utility function, Roy's identity and the Slutsky equation
C Measuring the benefits of price changes
D Composite commodities, separability and homotheticity
4 Further models of consumer behaviour
A Revealed preference
B The consumer as a labour supplier
C Consumption and the allocation of time
D Households
5 Production
A Introduction
B The production function
B Variations in scale
C Variations in input proportions
D The multi-product case
6 Cost
A Introduction
B Long-run cost minimization
C Short-run cost minimization
D Cost minimization with several plants
E Multi-product cost functions
7 Supply and firm objectives
A Long-run profit maximization
B Short-run profit maximization
C The multi-product firm
D The profit function and comparative statics
E The entrepreneurial firm
F Labour managed firms
8 The theory of a competitive market
A Short-run equilibrium
B Stability of equilibrium
C Long-run equilibrium
9 Monopoly
A Introduction
B Price and output determination under monopoly
C Price discrimination
D Monopoly welfare loss
10 Input markets
A Demand for inputs
B Monopsony
C Unions as monopoly input suppliers
D Bilateral monopoly
11 Capital markets
A Introduction
B Optimal consumption over time
C The optimal investment decision
D Capital market equilibrium under certainty
E Extensions to many periods
12 General equilibrium
A Introduction
B Walrasian equilibrium of a competitive economy
C Existence of Walrasian equilibrium
D Stability of Walrasian equilibrium
E Edgeworth exchange theory
F Exchange, equilibrium and the core
13 Welfare economics
A Introduction
B Pareto efficient resource allocation
C Welfare functions and the Pareto criterion
D Pareto efficiency and competitive markets
E Distribution and markets
F Arrow's impossibility theorem
14 Market failure and government failure
A The causes of market failure
B Instances of market failure
C Theory of the second best
D Government failure
15 Game theory
A Introduction
B Game representation and solutions
C Imperfect and incomplete information
D Mixed strategies
E Cooperative bargaining
F Non-cooperative bargaining
G Delay and disagreement in bargaining
16 Oligopoly
17 Choice under uncertainty
A Introduction
B A formalization of ‘uncertainty'
C Choice under uncertainty
D Properties of the utility function
E Risk aversion and indifference curves
F Measures of risk
G Comparative statics under uncertainty
18 Production under uncertainty
A Introduction
B Competitive firm under uncertainty
C Production with futures markets
19 Insurance, risk spreading and risk pooling
A Introduction
B The insurance decision
C Incomplete insurance markets
D Risk spreading: the Arrow-Lind Theorem
E Risk pooling
F Asymmetric information in insurance markets : adverse selection
G Asymmetric information in insurance markets : moral hazard
20 Agency and contract theory
21 General equilibrium under uncertainty and incomplete markets
A Introduction
B Complete markets in state contingent claims
C State contingent commodities
D Efficiency with production
E The stock market
F Incomplete stock markets
Further reading
Mathematical Appendices
A Structure of optimisation problems
B Solutions: questions and