_Rubinstein__Lectures_notes_in

_Rubinstein__Lectures_notes_in - This is a revised version...

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This is a revised version of the book, last up- dated January 20th, 2010. Please e-mail me any comments and corrections. Ariel Rubinstein rariel@post.tau.ac.il
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Lecture Notes in Microeconomic Theory
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Lecture Notes in Microeconomic Theory Ariel Rubinstein PRINCETON UNIVERSITY PRESS PRINCETON AND OXFORD
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Copyright c ± 2006 by Princeton University Press. Requests for permission to reproduce material from this work should be sent to Permissions, Princeton University Press. Published by Princeton University Press, 41 William Street, Princeton, New Jersey 08540 In the United Kingdom: Princeton University Press, 3 Market Place, Woodstock, Oxfordshire OX20 1SY All Rights Reserved Library of Congress Cataloging-in-Publication Data Rubinstein, Ariel. Lecture notes in microeconomic theory : the economic agent / Ariel Rubinstein. p. cm. Includes bibliographical references and index. ISBN-13: 978-0-691-12030-0 (cl : alk. paper) ISBN-13: 978-0-691-12031-7 (pbk. : alk. paper) ISBN-10: 0-691-12030-7 (cl : alk. paper) ISBN-10: 0-691-12031-5 (pbk. : alk. paper) 1. Microeconomics. 2. Economics. I. Title. HB172.R72 2006 338.5 0 01–dc22 2005047631 British Library Cataloging-in-Publication Data is available This book has been composed in ITC Stone. Pr intedonac id - freepaper . pup.princeton.edu Printed in the United States of America 1 0987654321
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Contents Preface vii Introduction ix Lecture 1. Preferences 1 Problem Set 1 10 Lecture 2. Utility 13 Problem Set 2 22 Lecture 3. Choice 25 Problem Set 3 45 Lecture 4. Consumer Preferences 49 Problem Set 4 62 Lecture 5. Demand: Consumer Choice 65 Problem Set 5 79 Lecture 6. Choice over Budget Sets and the Dual Consumer 81 Problem Set 6 88 Lecture 7. Production 91 Problem Set 7 98 Lecture 8. Expected Utility 101 Problem Set 8 112 Lecture 9. Risk Aversion 115 Problem Set 9 128 Lecture 10. Social Choice 131 Problem Set 10 139 Review Problems 141 References 156
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Preface This short book contains my lecture notes for the Frst quarter of a microeconomics course for PhD or Master’s degree economics students. The lecture notes were developed over a period of almost 15 years during which I taught the course, or parts of it, at Tel Aviv, Princeton, and New York universities. I am publishing the lecture notes with some hesitation. Several superb books are already on the shelves. I most admire Kreps (1990), which pi- oneered the transformation of the game theoretic revolution in economic theory from research papers into textbooks. His book covers the mate- rial in depth and includes many ideas for future research. Mas-Colell, Whinston, and Green (1995) continued this trend with a very compre- hensive and detailed textbook. There are three other books on my short list: Bowles (2003), which brings economics back to its authentic, polit- ical economics roots; Jehle and Reny (1997), with its very precise style; and the classic Varian (1984). These Fve books constitute an impres- sive collection of textbooks for the standard advanced microeconomics course.
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