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ECONOMICS 110
An Introduction to Microeconomic Analysis
KATERINA SIMONS
SPRING 2019
COURSE DESCRIPTION
Economics is divided into two fields: Microeconomics and Macroeconomics.
Macroeconomics looks at the behavior of the economy as a whole, in particular the
behavior of such aggregate measures as the unemployment rate, inflation, economic
growth and the balance of trade. In contrast, Microeconomics studies how individuals,
households and firms make decisions, how they interact with one another and how their
interactions determine demand and supply. This course is an introduction to
Microeconomics.
TEXTBOOK
The textbook for this course is Robert H. Frank, Microeconomics and Behavior, 9th ed.
McGraw Hill, New York, 2014. It’s OK to use an older edition.
Supplementary Readings
1. Akerlof, “The Market for Lemons: Quality Uncertainty and the Market Mechanism"
2. Tversky and Kahneman, “Rational Choice and the Framing of Decisions.” (TK)
3. Thaler, Richard, Tversky, Kahneman, and Schwartz, “The Effect of Myopia and Loss
aversion on Risk Taking: an Experimental Test.” (TTK)
4. Leibenstein, “Allocative Efficiency vs. X-efficiency”
5. Spence, “Job Market Signaling.”
6. Coase, “The Problem of Social Cost.”
Part I: Introduction
2
Part III: Producer Theory
3
Reading: Frank: Chapter 15
GOOD LUCK!
HOPE YOU ALL WILL ENJOY THE COURSE!