Chapter 1
THREE WAYS TO MODEL BEHAVIOR
Utility maximization
Preference maximization
Choice Correspondence
Utility maximization is the most convenient model to use. Behavior is summarized by a single function. Also, we (the economists) know how to maxim

Lecture 9
Yu Awaya
University of Rochester
November 19, 2015
Review
Production
Private ownership economy
State and prove rst theorem
State and prove second theorem
Russia should go to autarky
Labor market
Labor market
Two goods, L = 2
= 1 is input (labor)

Lecture 10
Yu Awaya
University of Rochester
November 24, 2015
Review
I
Pure exchange economy
I
I
I
I
I
Define competitive equilibrium
State and prove first theorem
State and prove second theorem
Debreu-Scarf core convergence theorem
Private ownership econ

Lecture 8
Yu Awaya
University of Rochester
November 17, 2015
Production
I
So far, we worked on pure exchange economy
I
No production
I
Many important economic issues relates to production
I
Work on a model with production
I
Most results we learned in pure

Lecture 5
Yu Awaya
University of Rochester
November 5, 2015
General equilibrium
Pure exchange economy
Dene competitive equilibrium
State and prove rst fundamental theorem of welfare
economics
State and prove second fundamental theorem of welfare
economics

Lecture 6
Yu Awaya
University of Rochester
November 11, 2015
General equilibrium
Pure exchange economy
Dene competitive equilibrium
State and prove rst fundamental theorem of welfare
economics
State and prove second fundamental theorem of welfare
economic

Lecture 4
Yu Awaya
University of Rochester
November 3, 2015
General equilibrium
Pure exchange economy
Dene competitive equilibrium
State and prove rst fundamental theorem of welfare
economics
State and prove second fundamental theorem of welfare
economics

Lecture 2
Yu Awaya
University of Rochester
October 22, 2015
General equilibrium
Pure exchange economy
General equilibrium
Pure exchange economy
Dene competitive equilibrium
General equilibrium
Pure exchange economy
Dene competitive equilibrium
State and p

Lecture 1
Yu Awaya
University of Rochester
October 22, 2015
General Equilibrium
In the early 30s Japan
General Equilibrium
In the early 30s Japan
Great depression had a huge impact
General Equilibrium
In the early 30s Japan
Great depression had a huge imp

Lecture 3
Yu Awaya
University of Rochester
October 29, 2015
General equilibrium
I
I
Pure exchange economy
Define competitive equilibrium
I
I
I
Preferences and initial endowments are exogenous
Prices and consumption bundle are endogenous
State and prove fi

Notes on
Generalized Games
Vijay Krishna
Penn State University
Fall 2012
Denition 1 An n-player generalized game
i;
= (Ai ;
i=n
i ; Vi )i=1
consists of: for each
1. a set Ai of actions;
Q
2. a constraint correspondence i : j6=i Aj
Q
3. a payo function Vi

Chapter 2
How is the theory of revealed preference used in practice?
One typically species a functional form for the demand function x(p, w)
such as
ln xl (p, w) = 0 +
k
k ln pk + ln w,
(1)
and tries to estimate the parameters k , [by running an OLS reg

CHAPTER 6: Choice Under Risk
SETTING
Z := cfw_z1 , ., zn is a finite set of prizes
(Z) is the space of lotteries on Z
(Z) is a convex subset of Rn .
(Z) can also be viewed as a convex subset of Rn1 . In fact, (Z) is often
called the (n 1)-dimensional

Chapter 3
PRIMITIVES OF THE PROBLEM
X = Rl is the space of alternatives
+
As in Ch.2, choice problems are linear budget sets B(p, w)
Assume the individual is a preference maximizer: behavior governed by a
preference relation
on Rl
+
Classical assumpti

CHAPTER 4: AGGREGATION
There are n consumers
Consumer i has income wi and faces prices p. Thus, his demand function is
xi (p, wi )
Aggregate demand given prices p and the vector (w1 , ., wn ) of wealth
levels is
x(p, w1 , w2 , ., wn ) :=
xi (p, wi ).
i

Lecture 7
Yu Awaya
University of Rochester
November 12, 2015
Competitive equilibrium
Pure exchange economy
Dene competitive equilibrium
State and prove the rst fundamental theorem of welfare
State and prove the second fundamental theorem of welfare
Existe