14.03: Intermediate Applied Microeconomics

Syllabus

Professor Susan Athey
E52-251B, athey@mit.edu
Office Hours: M 4-5; Th 11-12.

TA: Stuti Khemani
E52-201, x3-8717, stuti@mit.edu
Office Hours: TBA.

Robert Marquez
E52-243g, x3-8701, rsmarqz@mit.edu
Office Hours: TBA.

Class: Monday-Wednesay, 10:30-12, 4-370.
Recitation: Sections are in 13-5101 on Friday at 10, and in 13-5101 and 13-3101 Friday at 11.

Text:

Nicholson, Walter, Microeconomic Theory: Basic Principles and Extensions, New York: Dryden Press, 1995.

Course Reader:

A packet of reading materials is available at Graphic Arts. Readings (in addition to the text) will be assigned every week. The reading is important for the course, but some of the articles have more technical sections which are not required. Reading assignments will described given in class, and problem sets will provide further guidance as to what is important.

Problem Sets:

This course will require approximately nine problem sets, which will generally be due on Monday in class. The problem sets will be discussed in section every Friday. The problems sets will have two parts: one part will include more technical problems out of the text book and based on class lectures, and the second part will cover the assigned reading from the course reader. Problem sets will not be accepted after 5 p.m. on the stated due date (after class, they should be taken to Michael KreutzÕ cubicle in E52-251); after that time, you will receive no credit for your assignment. There will be no exceptions. In order to accomodate unanticipated events or conflicts in your schedule, we will drop the lowest score on your problem sets when computing your problem set grades. Questions on problem sets should be directed to TAs first when possible.

Grading:

Problem sets 25%, midterm 30%, final 45%. The exams will be based on the textbook, the problem sets, and the assigned readings. Performance on problem sets is highly correlated with performance on the exams.

World Wide Web:

The world wide web address for the class is http://web.mit.edu/athey/www/14.03. Problem sets, the syllabus, reading assignments, and the reading list will be available there, either in text form, postscript form, or both. This will be updated regularly.

COURSE OUTLINE

1. Introduction, Overview, and Tools

2. Choice and the Theory of Demand

3. Production and Supply

4. Prices and Perfect Competition

5. Imperfect Competition and Market Power

6. Choice Under Uncertainty

7. Limits of the Market

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