ECON-9020: Macoeconomics
Lecture 1: What is Macro All About? The Four Central Problems in Macro
I)Growth
Production is measured by GDP. Growth refers to changes in production, measured by
chages in real GDP. GRAPH: Two Millennia of Growth. The standard of
ECON-9020: Macoeconomics
Lecture 1: What is Macro All About? The Four Central Problems in Macro
I)Growth
Production is measured by GDP. Growth refers to changes in production, measured by
chages in real GDP. GRAPH: Two Millennia of Growth. The standard of
Chapter 10
Reputation Formation
In a complete information game, it is assumed that the players know exactly what other
players payos are. In real life this assumption almost never holds. What would happen
in equilibrium if a player has a small amount of d
Chapter 8
Rationalizability
The denition of a game (N, S, u1 , . . . , un ) implicitly assumes that
1. the set of players is N , the set of available strategies to a player i is Si , and the
player i tries to maximize the expected value of ui : S R accord
Lecture 7
Rationalizability
14.123MicroeconomicTheoryIII
MuhametYildiz
A Game
L
R
T
(2,0)
(1,1)
M
(0,10)
(0,0)
B
(1,6)
(2,0)
1
Assume
Player 1 is rational
L
Player 2 is rational
R
T
(2,0) (1,1)
M
(0,10) (0,0)
B
Player 2 is rational and
Knows that Player 1
Chapter 9
Correlated and Sequential Equilibria
In this lecture, I will cover two important equilibrium concepts, namely correlated equilibrium and sequential equilibrium. Correlated equilibrium relaxes the assumption in the
Nash equilibrium that the playe
Guide for solving the 2000 exam for 14.122
Courtesy of James Vickery.
Used with permission.
Question 1
See the lecture notes or FT for the formal definition. We care about continuity at infinity because
(4
if this property is satisfied, then checking a pr
Math Recitation #1 September 22, 2009
I. Production Possibility Frontier
A. Definition: A curve that shows all possible combinations of producing two different
goods if all inputs are used to their maximum capacity. These are efficient combinations of
the
Math Recitation #2 September 29, 2009
I. Utility functions
Describes the utility a good gives a certain individual. The function can include many goods that contribute
to utility to different degrees.
U(x,y)=x + y
U(x,y)= xy
U(x,y)=5lnx + 7lny
II. Indiffe
Chapter 7
Preliminary Notions in Game
Theory
I assume that you recall the basic solution concepts, namely Nash Equilibrium, Bayesian
Nash Equilibrium, Subgame-Perfect Equilibrium, and Perfect Bayesian Nash Equilibrium, from 14.122 very well. In the next t