Salisbury University
Perdue School of Business
Department of Economics and Finance

ECON306																				P. LeBel
Intermediate Microeconomic Analysis								         				  Spring 2011
CH114 MW 10:30-11:45

Course Objectives

Microeconomic analysis explores in detail the nature of economic decisions of individual units within the overall economic system.  Combining theory with contemporary applications, it examines the nature and consequences of differing market structures in order to determine the conditions under which market pricing satisfies or fails to satisfy alternative policy criteria.  In so doing, the student acquires key analytical skills with which to assess the relative merits of contemporary policy issues.  Descriptive, geometric, and elementary quantitative methods will be used throughout the course.  Class sessions, which are based on a student's prior reading of assigned materials, require a significant degree of student participation.

A student who has completed this course is expected to demonstrate a mastery of essential concepts and analytical skills in several key areas.  The most important of these areas are:

1.	The nature of economic institutions in resource allocation decisions, including a specification of the economic functions of the public sector, the meaning and measurement of risk, and how risk affects the mix of public and private sector decisions.

2.	The formulation and interpretation of:  consumer indifference curves, cardinal vs. ordinal and Von Neumann-Morgenstern utility, consumer budgets, revealed preference, Engel curves, and consumer and producer surplus;

3.	The computation and interpretation of point and arc price, income, and cross price elasticities of demand and supply, along with a derivation and application of the elasticity of substitution and consideration of its implications on the distribution of income;

4.	The computation and interpretation of alternative short and long-run production functions of individual firms and industries, including the derivation of total, average, and marginal products, the use of isoquants in the specification of these conditions, the differentiation of Cobb-Douglas, CES, VES, and Leontief production technologies, along with applications of production functions to such problems as linear programming decisions;

5.	The formulation, computation, and interpretation of the following categories of both cost and revenues:  total, average, fixed, variable, marginal, iso-, social vs. private, implicit vs. explicit, and shut-down versus break-even conditions;

6.	The diagrammatic specification of static and dynamic equilibrium optimal and non-optimal conditions of:  perfect competition, pure competition, monopolistic competition, oligopoly, pure monopoly, pure monopsony, monopsonistic competition, oligopsony, the cobweb theorem, Ramsey and other forms of price discrimination, the Cournot, Edgeworth, Chamberlin, Sweezy models, as well as contestable market models, and game theoretic formulations;

7.	The identification and interpretation of general economic equilibrium, including a specification of the Walrasian and Leontief models, along with applications to contemporary economic issues;

8.	The identification of market failure conditions in the context of welfare economic theory, including external economies and diseconomies, pure and quasi-public goods, merit goods, the Arrow impossibility theorem, the general theory of second best, as well as a derivation and application of the methodology of cost-benefit analysis to specific economic issues.

Course Format
Descriptive, geometric, and elementary quantitative methods will be used throughout the course. Class sessions, which are based on a student's prior reading of assigned materials, require a significant degree of student participation. Extensive use will be made of the course website, located at: http://netdrive.montclair.edu/~lebelp.  

The student’s knowledge in each of the above areas will be tested in three examinations, and in periodic case studies.  A student who has successfully mastered both theory and methodological applications in these areas will be well prepared to pursue both direct career experience, as well as continuing study in Economics and/or related fields.

                                                                      Salisbury University
Perdue School of Business
Department of Economics and Finance

ECON306																			P. LeBel
Intermediate Microeconomic Analysis									 			 Spring 2011
CH114 MW10:30-11:45

Syllabus

	Text:	Robert S. Pindyck and Daniel L. Rubinfeld (2009). Microeconomics, 
                      seventh edition. (Upper Saddle River, N.J.: Pearson Prentice-Hall)

Readings on Reserve:
Allman,William F.(1985).,”Determining Risks with Statistics – and with Humanity,” Science 85/Baltimore Sun, October 13, 1985, p. 50.
Arrow, Kenneth J, Hollis B. Chenery, B.S. Minhas, and Robert M. Solow.  "Capital-Labor Substitution and Economic Efficiency". Review of Economics and Statistics LXIII (August 1961), pp. 225-250.
Arrow, Kenneth J., “The Organization of Economic Activity:  Issues Pertinent to the Choice of Market versus Non-Market Activity,” in Mansfield Readings, (437-455).
Arrow, Kenneth J.(1997), “Invaluable Goods,” Journal of Economic Literature XXXV (June): 757-765.
Arrow, Kenneth J. (1998), “What Has Economics to Say About Racial Discrimination,” Journal of Economic Perspectives 12:2 (Spring): 91-100.
Arthur, W. Brian (1989), “Competing Technologies, Increasing Returns, and Lock-In by Historical Events,” The Economic Journal 99:394 (March), 116-131.
Atkinson, Anthony B. (1987), “On the Measurement of Poverty,” Econometrica 55:4 (July), 749-764.
Barron, John M., Byung-Uk Chong, and Michael E. Staten (2008), "Emergence of Captive Finance Companies and Risk Segmentation in Loan Markets: Theory and Evidence," Journal of Money, Credit and Banking 40:1 (February), 174-192.
Bator, Francis M., “Anatomy of Market Failure,” Journal of Political Economy, (1958).
Baumol, William, (1965). “The Empirical Determination of Demand Relationships,” Economic Theory and Operations Analysis (Prentice-Hall, 1965).
Bergson, Abram.  "On Monopoly Welfare Losses".  American Economic Review LXIII (December 1973), pp. 853-870.
Bernouilli, Daniel (1954, 1738), “Exposition of a New Theory on the Measurement of Risk,” Econometrica 22:2 (January), 23-36.
Christenson, Laurits B., Dale W. Jorgenson, and Lawrence J. Lau (1973)."Transcendental Logarithmic Production Frontiers".  Review of Economics and Statistics LV, no. 1 (February 1973), pp. 28-45.
Coase, Ronald H (1937)., “The Nature of the Firm,” Economica, New Series 4:16 (November), 386-405.
Coase, Ronald H.(1960),  “The Problem of Social Cost”, Journal of Law and Economics  (October).
Conlisk, John (1996).  “Why Bounded Rationality?”  Journal of Economic Literature XXIV:2 (June 1996), pp. 669-700. 
Coughlin, Cletus K., Alec Chrystal, and Geoffrey E. Wood (1988), “Protectionist Trade Policies:  A Survey of Theory, Evidence and Rationale,” Federal Reserve Bank of St. Louis (January/February 1988): 12-30.
Dixit, Avinash, and Robert Pindyck (1994), Investment Under Uncertainty (Princeton, NJ:  Princeton University Press).
Downs, Anthony (1957), “An Economic Theory of Political Action in a Democracy,” Journal of Political Economy I, 65:2 (April);, 135-150.
Federal Trade Commission (1973).  “The Petroleum Industry:  Structure and Conduct”, in Mansfield, Microeconomics Readings, (326-341).
Friedman, Milton and Leonard J.Savage (1948), “The Utility Analysis of Choices Involving Risk,” Journal of Political Economy I 56:4 (August), 279-304).
Galbraith, John Kenneth (1958).  “Consumer Behavior and the Dependence Effect”, in Mansfield, Microeconomics Readings, (3-6).
Harberger, Arnold C. (1954),  “Monopoly and Resource Allocation” (1954), in Mansfield, Microeconomics Readings, (198-209).
Harris, Ethan S., “Forecasting Automobile Output,” Federal Reserve Bank of New York Review (1985).
Hayek, Friedrich A.(1961),  “The Non Sequitur of the ‘Dependence Effect’”, in Mansfield, Microeconomics Readings, (7-11).
Holmstrom, Bengt, and John Roberts.  “The Boundaries of the Firm Revisited,” Journal of Economic Perspectives 12:4 (Fall 1998): 73-94.
Houthakker, Hendrik S. "An International Comparison of Household Expenditure Patterns, Commemorating the Centenary of Engel's Law'. Econometrica 25:4 (October 1957), pp. 252-272.
Kakwani, Nanak C. (1977). “Applications of Lorenz Curves in Economic Analysis,” Econometrica 45:3 (April), 719-728.
Landers, Renée M., James B. Rebitzer, and Lowell J. Taylor.  “Rat Race Redux:  Adverse Selection in the Determination of Work Hours in Law Firms”.  American Economic Review 86:3 (June 1996), pp. 329-346.
Leibenstein, Harvey,  “Bandwagon, Snob, and Veblen Effects in the Theory of Consumers’ Demand” Quarterly Journal of Economics  (1950).
Leibenstein, Harvey,  “Allocative Efficiency vs. ‘X-Efficiency’” (1966), in Mansfield, Microeconomics Readings, (210-229).
Lorie, James H., and Leonard J. Savage.  “Three Problems in Rationing Capital”, in Mansfield, Microeconomics Readings, (499-512).
Magee, John F.,  “Guides to Inventory Policy:  Functions and Lot Sizes”, in Mansfield, Managerial Economics Readings, (481-505).
Moore, Frederick T.,  “Economies of Scale:  Some Statistical Evidence” (1959), in Mansfield, Microeconomics Readings, (117-128).
Pareto, Vilfredo (1897), “The New Theories of Economics,” Journal of Political Economy 5:4 (September), 485-502.
Parkinson, C. Northcote, “Parkinson’s Law”, in Mansfield, Managerial Economics Readings, (63-70).
Porter, Robert H.,  “The Role of Information in U.S. Offshore Oil and Gas Lease Auctions”.  Econometrica 63:1 (January 1995), pp. 1-28.
Ramsey, Frank P. (1927), “A Contribution to the Theory of Taxation,” The Economic Journal 37:145 (March), 47-61.
Samuelson, William (1984), “Bargaining Under Asymmetric Information,” Econometrica 52:4 (July): 995-1007.
Shubik, Martin,  “A Note on Decision-Making Under Uncertainty”, in Mansfield, Managerial Economics Readings, (418-420).
Simon, Herbert A.,  “Theories of Decision-Making in Economics and Behavioral Science”, American Economic Review (1959).
Stigler, George J. (1957), “Perfect Competition, Historically Contemplated,” Journal of Political Economy 65:1 (February), 1-17.
Stiglitz, Joseph E., “The Causes and Consequence of the Dependence of Quality on Price,” Journal of Economic Literature 25 (March 1987): 1-48.
Walters, A.A.,  "Production and Cost Functions:  An Econometric Survey".  Econometrica 31:1-2 (January-April 1963), pp. 1-66.

All class sessions are based on the student's prior reading of assigned material.  Exceptions to reserve readings will be announced by the instructor. 

***
I.	The Nature and Significance of Applied Microeconomic Analysis
(1/24/11) Class  1- An Overview of Microeconomic Concepts and Analysis: Interpretation, Prediction, and Policy, text (1-26).  Key Concepts:  Real vs. Nominal Prices; Trade-offs; Positive versus Normative Economics; Arbitrage; Extent of a Market; Consumer Price Index (CPI); Producer Price Index (PPI); Minimum Wage standards. Datasets:  US Consumer Price Index 1913-2009. Application Modules: The Circular Flow Diagram; Economic Functions of the Public Sector.  Classroom Case Studies: None.  Optional Reserve Readings: None.

(1/26/11) Class  2 - Market versus Non-Market Choices in Economics: Assumptions and Economic Policy Criteria, text (27-52). Key Concepts: Individual vs. Market Demand and Supply; Functional vs. Inverse Demand and Supply Functions; Market Dynamics for Office Space in NYC; Datasets: Stock Market Valuation; Human Development Index 2001; Human Development Index 2010. Application Modules: Supply and Demand;  Classroom Case Studies: Basic Supply and Demand. Optional Reserve Readings: Arrow, Kenneth J., “The Organization of Economic Activity:  Issues Pertinent to the Choice of Market versus Non-Market Activity,” in Mansfield Readings, (437-455); Arrow, Kenneth J.(1997), “Invaluable Goods,” Journal of Economic Literature XXXV (June): 757-765.

II.	Theory and Applications of Consumer Demand
(1/31/11) Class  3 - Elasticity Measures, text (53-77). Key Concepts:  Point Own-Price Elasticity of Demand; Arc Own-Point Price Elasticity of Demand; Cross Price Elasticity of Demand; Datasets: Global Data; Bills, Bonds, Stocks, Inflation;  Introductory Price Elasticity; Price Elasticity Profiles; Elasticity Estimates. Application Modules: The Total Revenue Test; Introductory Price Elasticity Summary Relations. Classroom Case Studies: Own Price Elasticity of Demand; Optional Reserve Readings: Leibenstein, Harvey,  “Bandwagon, Snob, and Veblen Effects in the Theory of Consumers’ Demand” Quarterly Journal of Economics  (1950); Galbraith, John Kenneth (1958).  “Consumer Behavior and the Dependence Effect”, in Mansfield,Microeconomics Readings, (3-6); Hayek, Friedrich A.(1961),  “The Non Sequitur of the ‘Dependence Effect’”, in Mansfield, Microeconomics Readings, (7-11).

(2/02/11) Class  4 - Extensions and Applications of Elasticity Measures in Consumer Demand, text (78-102). Key Concepts: Cross-Price Elasticity of Demand, Income Elasticity of Demand; Engel Curves; Elasticity of Substitution in Consumption; Optimal Consumption Choices in and Across Time; Indifference curves; Ordinal versus Cardinal Rankings; the Marginal Rate of Substitution (MRS), Perfect Substitutes vs. Perfect Complements, Budget Constraints; Effects of Changes in Income and Prices; Total versus Marginal Utility; Cost of Living Indices; Individual versus Market Demand. Datasets: Variety in Consumer Choice; Engel Curves; Application Modules: Cobb-Douglas Utility Function. Classroom Case Studies: Income and Substitution Effects in Consumer Demand; Optimal Food Stamp Pricing (optional). Optional Reserve Readings: Houthakker, Hendrik S. "An International Comparison of Household Expenditure Patterns, Commemorating the Centenary of Engel's Law'. Econometrica 25:4 (October 1957), pp. 252-272; Bernouilli, Daniel (1954, 1738), “Exposition of a New Theory on the Measurement of Risk,” Econometrica 22:2 (January), 23-36.

(2/07/11) Class  5 – Value and Scarcity: Fundamental Analytical Tools in Microeconomic Analysis, text (103-127).  Key Concepts: Income and Substitution Effects, Giffen versus ordinary inferior (necessity) versus superior (luxury) goods; From Individual to Market Demand; Total Social Welfare (TSW); Deadweight Social Welfare Loss (DSWL); Excess Burden of Taxation (EBT); Criteria for Taxation Systems.  Datasets:  None. Application Modules: Simple Regression Analysis; Basic Regression Model; Basic Forecasting. Classroom Case Studies: Engel Curves and the Income Elasticity of Demand. Optional Reserve Readings: Baumol, William, (1965). “The Empirical Determination of Demand Relationships,” Economic Theory and Operations Analysis (Prentice-Hall, 1965); Ramsey, Frank P. (1927), “A Contribution to the Theory of Taxation,” The Economic Journal 37:145 (March), 47-61.

(2/09/11) Class  6 - Measurement Issues and Applications in Microeconomic Analysis - Rent Control; Empirical Demand Curves, public sector intervention criteria and applications, text (128-153).  Key Concepts: Consumer Surplus, Producer Surplus, Positive Network Externalities (Bandwagon effect); Negative Network Externalities (Snob effect); Veblen effect. Datasets: Bond Market Profile; U.S. Futures and Options Markets;          Application Modules: Excise Taxation; Excise Tax Criteria  Classroom Case Studies: Excise Taxation Case Study. Optional Reserve Readings: Friedman, Milton and Leonard J.Savage (1948), “The Utility Analysis of Choices Involving Risk,” Journal of Political Economy I 56:4 (August), 279-304).
  
(2/14/11) Class  7 - Welfare Policy Criteria:  Efficiency and Equity, text (154-178).  Key Concepts: Welfare criteria of Pareto, Kaldor, Scitovsky, Bergson, Samuelson, Rawls, Atkinson; Probability, Expected Value; Variability; Deviation; Standard Deviation; Decision-Making; Preferences Toward Risk; Risk Premium; Risk Aversion; Risk Neutrality; Risk Loving; Strategies for Reducing Risk; Actuarial Fairness; The Value of Complete Information; Riskless and Risky Assets; Asset Returns. Datasets:  Stock Market Bubbles; Stock Market Volatility.  Application Modules: The Measurement of Risk; The Ranking of Risk; Classroom Case Studies: None. Optional Reserve Readings: Allman,William F. (1985), ”Determining Risks with Statistics – and with Humanity,” Science 85/Baltimore Sun, October 13, 1985, p. 50; Kakwani, Nanak C. (1977). “Applications of Lorenz Curves in Economic Analysis,” Econometrica 45:3 (April), 719-728.

(2/16/11) Class  8 - The Pareto Criterion as a Standard of Economic Efficiency, text (179-204). Key Concepts:  Risk and Return Tradeoffs; The Price of Investment Risk; Risk and Indifference Curves; Behavioral Economics; Reference Points; Endowment Effect; Loss Aversion; Anchoring Effect; Small Numbers Bias. Datasets: One Hundred Largest Companies, 2004; One Hundred Largest Companies, 2003; One Hundred Largest Companies, 2001; One Hundred Largest Companies, 1998;  One Hundred Largest Companies, 1995; U.S. Small Business Profile.  Application Modules: None. Classroom Case Studies:   None.  Optional Reserve Readings: Pareto, Vilfredo (1897), “The New Theories of Economics,” Journal of Political Economy 5:4 (September), 485-502.
 
III.  Production Decisions of Firms:  Technology, Costs, and Revenues 
(2/21/11) Class  9 – The Framework of Production Decisions, text (205-220). Key Concepts:  Theory of the Firm; Factors of Production; Production Function; Short versus Long-Run Production Decisions; Law of Variable Proportions (Diminishing Marginal Returns); Average vs. Marginal Products; Isoquants; Marginal Rate of Technical Substitution (MRTS); Constant-Increasing-Decreasing Returns to Scale. Datasets: None.  Application Modules: The Law of Variable Proportions; The Cobb Douglas Production Function; The CES Production Function.  Classroom Case Studies: Optimal Choice Of Multiple Inputs (Variable Inputs in Production) Optional Reserve Readings: Coase, Ronald H (1937)., “The Nature of the Firm,” Economica, New Series 4:16 (November), 386-405; Arrow, Kenneth J, Hollis B. Chenery, B.S. Minhas, and Robert M. Solow.  "Capital-Labor Substitution and Economic Efficiency". Review of Economics and Statistics LXIII (August 1961), pp. 225-250; Christenson, Laurits B., Dale W. Jorgenson, and Lawrence J. Lau (1973)."Transcendental Logarithmic Production Frontiers".  Review of Economics and Statistics LV, no. 1 (February 1973), pp. 28-45.

(2/23/11) Class 10 - First Examination, text (1-204), datasets, application modules, classroom case studies, selective reserve readings.

(2/28/11) Class 11 – The Cost of Production, text (221-255).  Key Concepts: Economic versus Accounting Costs, Sunk Costs, Variable Cost vs. Marginal Cost; Average Fixed Cost; Average Variable Cost; Average Total Cost, User Cost of Capital; Rental Rate of Capital; Opportunity Cost; Determinants of Cost Relationships; Cost-minimizing Input relationship (Technical Efficiency); Short Run Average Cost (SRAC) versus Long Run Average Cost (LRAC); Expansion Path and Long-Run Costs; Economies and Diseconomies of Scale versus Economies of Scope; Learning Curves; Duality in Production and Cost Theory; Product Transformation Curves; Marginal Rate of Product Transformation; the Cobb-Douglas Cost and Production Functions; Isocost Lines. Datasets: None. Application Modules: Cost Analysis.  Classroom Case Studies: Production and Cost Functions (Production, Costs, and Profit Maximization). Optional Reserve Readings: Walters, A.A., "Production and Cost Functions:  An Econometric Survey".  Econometrica 31:1-2 (January-April 1963), pp. 1-66; Moore, Frederick T.,  “Economies of Scale:  Some Statistical Evidence” (1959), in Mansfield, Microeconomics Readings, (117-128).

IV.  Production and Output Pricing Decisions Under Alternative Market Structures
(3/02/11) Class 12 – Applications of Cost Analysis and Firm Behavior, text (256-280). Key Concepts: Linear versus Nonlinear Variable Cost Functions; Mathematical Formulation of Production and Cost Theory; Profit Maximization in a Perfectly Competitive Market Framework; Price Taking; Product Homogeneity; Freedom of Entry and Exit; Theories of Firm Behavior; Alternative Forms of Business Organization – Single Proprietorships, Partnerships, Corporations, Profit vs. Non-Profit Entities; Cooperatives. Datasets: None.  Application Modules: None. Classroom Case Studies: Basic Economic Efficiency. Optional Reserve Readings: Harberger, Arnold C. (1954),  “Monopoly and Resource Allocation” (1954), in Mansfield, Microeconomics Readings, (198-209). Leibenstein, Harvey,  “Allocative Efficiency vs. ‘X-Efficiency’” (1966), in Mansfield, Microeconomics Readings, (210-229); Bergson, Abram.  "On Monopoly Welfare Losses".  American Economic Review LXIII (December 1973), pp. 853-870.

A.  Perfect Competition
(3/07/11) Class 13 –  Static and Dynamic Competitive Market Behavior, text (281-305). Key Concepts: Short-Run Profit and Loss Conditions of a Competitive Firm; Short-Run Supply Curves; Elasticity of Market Supply; Producer Surplus in the Short Run for Firms and Markets; Long-Run Output and Profit Maximization Choices; Long-Run Competitive Equilibrium for Firms and Markets; Homogeneous vs. Heterogenous Cost Structures; Economic Rent; Industry Long-Run Supply Curves – Constant, Increasing, Decreasing.  Datasets: Risk and Growth Application Modules: Static Market Equilibrium; Strategic Convergence. Classroom Case Studies: Basic Market Dynamics (Producer Density and Economic Efficiency). Optional Reserve Readings: 

(3/09/11) Class 14 – Analysis of Competitive Markets, text (306-331). Key Concepts: Evaluating Gains and Losses from Government Policies – Consumer and Producer Surplus (redux); Price Controls Under Variable Elasticity Conditions; Deadweight Social Welfare Loss (redux); Natural Gas Price Controls; Market Failure; Externalities; Incomplete Information and Incomplete Markets; The Market For Organ Transplants; Minimum Prices and Wages; Airline Regulation and Deregulation; Price Supports; Production Quotas; Incentive Programs; Wheat Price Support Program.  Datasets: None. Application Modules: None. Classroom Case Studies: Competitive Profit Maximization Under Risk. Optional Reserve Readings: Arthur, W. Brian (1989), “Competing Technologies, Increasing Returns, and Lock-In by Historical Events,” The Economic Journal 99:394 (March), 116-131; 

(3/14/11) Class 15 – Applications of Microeconomic Analysis – International Trade, Taxes and Subsidies in Commodity Markets, text (332-356).  Key Concepts: Import Tariffs and Quotas; Sugar Quotas; Specific (Commodity) Taxes; Tax Incidence; Gasoline Taxes;  Datasets:  None. Application Modules: The Cobweb Model Classroom Case Studies: None. Optional Reserve Readings: Harris, Ethan S., “Forecasting Automobile Output,” Federal Reserve Bank of New York Review (1985); Coughlin, Cletus K., Alec Chrystal, and Geoffrey E. Wood (1988), “Protectionist Trade Policies:  A Survey of Theory, Evidence and Rationale,” Federal Reserve Bank of St. Louis (January/February 1988): 12-30.

   B.  Pure Monopoly
 (3/16/11) Class 16 – Market Structure and Competitive Strategy, text (357-382). Key Concepts:  Monopoly vs. Monopsony; Antitrust Statutes; Market Power; Monopoly Profit Maximization and the Own-Price Elasticity of Demand; Markup Pricing; Multiplant Monopoly Firm; Multi-Product Monopoly Firm; Measuring Monopoly Power; The Social Costs of Monopoly Power; Public Policy Alternatives for Monopoly Industries; Rent-Seeking Behavior of Monopoly Firms; Natural Monopoly; Rate of Return Regulation; Oligopsony; Marginal Value, Marginal Expenditure, Average Expenditure,; Bilateral Monopoly; Parallel Conduct; Predatory Pricing. Datasets:  Application Modules: Random Demand Profit Maxima Classroom Case Studies: Pure Monopoly. Optional Reserve Readings:

(3/21/11 – 3/26/11) – University Spring Break – No Classes

(3/28/11) Class 17 – Public Policy Choices Under Conditions of Imperfect Competition, text (383-407). Key Concepts: Sherman Act of 1890; Clayton Act of 1914; FTC Act of 1914; Robinson-Patman Act of 1936; European Union Antitrust Policy; U.S. vs. Microsoft Case; Price Discrimination – First Degree, Second Degree, Third Degree; Reservation Price; Perfect Price Discrimination; Block Pricing; Coupon and Rebate Pricing Strategies; Airline Price Discrimination; Intertemporal Price Discrimination and Peak-Load Pricing. Datasets:  Application Modules: Market Structures; Concentration Ratios. Classroom Case Studies: Perfect Competition versus Monopoly. Optional Reserve Readings: Stigler, George J. (1957), “Perfect Competition, Historically Contemplated,” Journal of Political Economy 65:1 (February), 1-17.

C.  Oligopoly and Monopolistic Competition
(3/30/11) Class 18 –  Pricing With Market Power, text (408-433). Key Concepts: Two-Part Tariff Applications – Polaroid Cameras, Cellular Telephone Service; Product Price Bundling – DVD's, Automobile Purchases; Relative Valuations; Reservation Prices; Mixed Bundling Pricing; Restaurant Bundling Pricing; Tied Pricing; Advertising-To-Sales Ratio; Advertising Own-Price Elasticity of Demand. Datasets:  Application Modules: Price Discrimination Classroom Case Studies: The Multi-Product Monopoly Model.; Price Discrimination. Optional Reserve Readings: Simon, Herbert A.,  “Theories of Decision-Making in Economics and Behavioral Science”, American Economic Review (1959). 

(4/04/11) Class 19 –  Extensions of Pricing With Market Power, text (434-458). Key Concepts:  Transfer Pricing in Integrated Firms; Transfer Pricing With Outside Competitive Markets; Transfer Pricing with Non-Competitive Outside Markets; Monopolistic Competition; Oligopoly; Cartels; Nash Equilibrium; Duopoly; Cournot Model; Reaction Curves; The Von Stackelberg Oligopoly Model of First Mover Advantage; The Edgeworth-Bertrand Oligopoly Model of Unstable Price Dynamics. Datasets:  Application Modules: Market Structure and Conduct; Oligopoly Models. Classroom Case Studies: The Cournot Duopoly Model Optional Reserve Readings: Stiglitz, Joseph E., “The Causes and Consequence of the Dependence of Quality on Price,” Journal of Economic Literature 25 (March 1987): 1-48.

(4/06/11) Class 20 –  Further Extensions of Pricing With Market Power, text (459-483). Key Concepts: Price Competition with Differentiated Products; Nash Equilibrium in Pricing; The Prisoner's Dilemma; The Sweezy Kinked Demand Curve Model (1939); Price Rigidity vs. Price Signaling; Price Leadership; Dominant Firm Model; Basic Elements of Game Theory – Payoff Matrix; Non-Cooperative vs. Cooperative Games; Price Rigidity;   The OPEC Oil Cartel; The CIPEC Copper Cartel; the NCAA Cartel; The Milk Cartel;  Datasets:  Application Modules: The Kinked Demand Curve Model; Prisoner’s Dilemma. Classroom Case Studies: Monopolistic Competition, Optional Reserve Readings: Federal Trade Commission (1973).  “The Petroleum Industry:  Structure and Conduct”, in Mansfield, Microeconomics Readings, (326-341).

(4/11/11) Class 21 - Second Examination, text (230-382), datasets, application modules, classroom case studies, selective reserve readings.

(4/13/11) Class 22 –  Game Theory and Competitive Strategy, text (484-508). Key Concepts:  Dominant Strategy; Nash-Cournot Equilibrium; Maximin Strategies; Mixed Strategies; Pure Strategy; Repeated Games; Tit-For-Tat Strategies; Infinitely Repeating Games; Finitely Repeating Games; Sequential Games; Extensive Form of Games; First Mover Advantages; Threats, Commitments, and Credibility; Bargaining Strateghy; Entry Deterrence; Strategic Trade Policy and international Competition. Datasets:  Application Modules:  Classroom Case Studies: Strategic Behavior of Firms. Optional Reserve Readings: Shubik, Martin,  “A Note on Decision-Making Under Uncertainty”, in Mansfield, Managerial Economics Readings, (418-420); Samuelson, William (1984), “Bargaining Under Asymmetric Information,” Econometrica 52:4 (July): 995-1007.

(4/18/11) Class 23 – Extensions of Game Theory and Competitive Strategy, text (509-534). Key Concepts:  Auction Markets – English Oral, Dutch, Sealed-Bid First-Price and Second-Price Auctions; Private-Value Auctions; Common-Value Auctions; The Winner's Curse; Bidding and Collusion; Internet Auctions – eBay. Datasets:  Application Modules:  Classroom Case Studies: None. Optional Reserve Readings: Porter, Robert H.,  “The Role of Information in U.S. Offshore Oil and Gas Lease Auctions”.  Econometrica 63:1 (January 1995), pp. 1-28.

V.  Theory and Applications of Factor Market Structures
(4/20/11) Class 24 – Factor Markets 1 – Labor, text (535-560). Key Concepts: Competitive Factor Markets; Derived Demand Curves; Marginal Revenue Product; From Factor to Market Demand Relationships; Jet Fuel Demand Functions; Average vs. Marginal Expenditure Curves; Backward-Bending Supply Curve for Labor (1961); Income and Substitution Effects for Wage Changes; Labor Market Equilibrium Determination; Economic Rent; Land Rent; Monopsony Power; Organized (Union) vs. Non-Organized Labor Markets;  Datasets: Education and Income; International Health Care;  Application Modules: Educational Forecasting Model. Classroom Case Studies: None. Optional Reserve Readings: Parkinson, C. Northcote, “Parkinson’s Law”, in Mansfield, Managerial Economics Readings, (63-70); Landers, Renée M., James B. Rebitzer, and Lowell J. Taylor.  “Rat Race Redux:  Adverse Selection in the Determination of Work Hours in Law Firms”.  American Economic Review 86:3 (June 1996), pp. 329-346.

(4/25/11) Class 25 – Factor Markets 2 – Capital, text (561-585). Key Concepts:  Financial Stocks vs. Flows; Present Discounted Value (PDV); Bond Valuation; Effective Bond Yields; Corporate and Treasury Bond Yields; Net Present Value (NPV) Criterion for Capital Investment Decisions; The Choice of An Optimal Discount Rate; Opportunity Cost of Capital Revisited; Real vs. Nominal Discount Rates; Risk Premium; Diversifiable vs. Nondiversifiable Risk; The Capital Asset Pricing Model (CAPM); The Risk-Adjusted Discount Rate; Investments in Human Capital – Education; Datasets:  Application Modules: Optimal Resource Pricing; Joint Optimum Input Use; Fundamentals of Finance; Optimal Investment Storage Classroom Case Studies: None. Optional Reserve Readings: Lorie, James H.,and Leonard J. Savage.  “Three Problems in Rationing Capital”, in Mansfield, Microeconomics Readings, (499-512); Magee, John F.,  “Guides to Inventory Policy:  Functions and Lot Sizes”, in Mansfield, Managerial Economics Readings, (481-505); Dixit, Avinash, and Robert Pindyck (1994), Investment Under Uncertainty (Princeton, NJ:  Princeton University Press).

(4/27/11) Class 26 – Factor Markets 3 – Land, text (586-610). Key Concepts: Pricing of an Exhaustible Resource; The Production Decision of an Individual Resoruce Producer; User Cost; Natural Resource Choices by a Monopolist; Determination of Interest Rates – Treasury Bill Rate, Treasury Bond Rate, Discount Rate, Federal Funds Rate, Commercial Paper Rate,  Datasets: Energy Efficiency; U.S. Agriculture. Application Modules: Exhaustible Resource Model Classroom Case Studies: Optimal Pricing of Exhaustible Resources. Optional Reserve Readings:

VI.	General Equilibrium and Welfare Policy Applications
 (5/02/11) Class 27 – Information, Market Failure, and the Role of Government (redux), text (611-634). Key Concepts:  General Equilibrium and Economic Efficiency; Partial vs. General Equilbrium; Interdependent Markets and General Equilibrium; Pareto Efficiency in Exchange; The Edgeworth-Bowley Diagram; The Contract Curve; Consumer Equilibrium in a Competitive Market; Utilities Possibilities Frontier; Social Welfare Function; Production Possibilities Frontier; Marginal Rate of Transformation; Output Efficiency; Comparative Advantage and the Gains from Trade; The Spatial Allocation of iPod Production Decisions; Conditions for Efficiency in General Equilibrium – Efficiency in Exchange, Efficiency in the Use of Inputs in Production, Efficiency in the Output Market; Source of Market Failure: Imperfect Competition, Incomplete Information, Externalities, Public Goods. Datasets: Corruption and Economic Development, Corruption Perceptions Index 2001Application Modules: The Leontief Static IO Model; Commodity Stabilization Models Classroom Case Studies: Gains and Losses from International Trade and Tariffs . Optional Reserve Readings: Downs, Anthony (1957), “An Economic Theory of Political Action in a Democracy,” Journal of Political Economy I, 65:2 (April);, 135-150.

(5/04/11) Class 28 – Markets With Asymmetric Information, text (635-661). Key Concepts: Quality Uncertainty and the Market for Lemons and Used Cars; Adverse Selection; Reputation and Standardization Mechanisms; Market Signaling; Moral Hazard; The Principal-Agent Problem; Managerial Incentives In Horizontally or Vertically Integrated Firms; Incentive Design; Efficiency Wage Theory; Shirking Model; Datasets:  Application Modules: Project Financial Analysis Classroom Case Studies: Externalities Case Study; The Harrod-Domar Growth Model (optional); The Am Djena Livestock Project (optional). Optional Reserve Readings: Holmstrom, Bengt, and John Roberts.  “The Boundaries of the Firm Revisited,” Journal of Economic Perspectives 12:4 (Fall 1998): 73-94; Coase, Ronald H.(1960),  “The Problem of Social Cost”, Journal of Law and Economics  (October).

(5/09/11) Class 29 – Externalities, Public Goods, and Income Distribution, text (662-686). Key Concepts: Externalities and Public Goods; Marginal External Costs and Marginal Social Costs; Marginal External and Marginal Social Benefits; Emissions Fees vs. Standards; Tradeable Emissions Permits; Recycling; Refundable Deposits; Stock Externalities; Global Warming; Social Rate of discount; Greenhouse Gase Emissions; Property Rights; Costly Bargaining; The Coast Theorem; Common Property Resources; Nonexclusive Goods; Private Preferences for Public Goods. Datasets: Africa Data, Human Development Index 2004, Generosity Index 2004,  Application Modules: Externalities; The Basic Option Price Model Classroom Case Studies: Income Distribution. Final Examination Review: text (1-686), datasets, application modules, classroom case studies, designated reserve readings. Economic Terminology. Optional Reserve Readings:

Policies and Procedures:
1.  Grading:   Final examination:	40% (cumulative; essays and 
 										  objective)
Other examinations:	50% (25% each; essays and
         objective)
    		       Class participation:	10% 				
2.  Make-up examinations:  None. 
3.  Office Hours:  lebelp@mail.montclair.edu
					pxlebel@Salisbury.edu

                                           	                  Salisbury University
Perdue School of Business
Department of Economics and Finance

ECON306															 					P. LeBel
Intermediate Microeconomic Analysis														      

       Reading List

	I.  Texts in Microeconomic Theory
A. Asimakopoulos (1978).   An Introduction to Economic Theory:  Microeconomics.  (New York:  Oxford University Press).
Roger D. Blair and Lawrence W. Kenny (1987).  Microeconomics With Business Applications.  (New York:  John Wiley and Sons).
Edgar K. Browning and Jacqueline M. Browning (1992).  Microeconomic Theory and Applications, fourth edition.  (Boston:  Little Brown).
Thomas M. Carroll (1983).  Micro Theory:  Concepts and Applications.  (New York:  St. Martin's Press).
Robert W. Clower, Philip E. Graves, and Robert L. Sexton (1988).  Intermediate Microeconomics.  (New York:  Harcourt Brace Jovanovich/Academic Press).
Allen C. DeSerpa (1988).  Microeconomics:  Theory and Applications, second edition.  (Newton, Massachusetts:  Allyn and Bacon, Inc.).
Donald Dewey (1975).  Microeconomics:  The Analysis of Prices and Markets.  (New York:  Oxford University Press).
A.K. Dixit (1990).  Optimization in Economic Theory, second edition.  (New York:  Oxford University Press).
B. Curtis Eaton and Diane E. Eaton (1988).  Microeconomics.  New York:  W.H. Freeman and Company).
Robert H. Frank (2005).  Microeconomics and Behavior, fifth edition.  (New York:  McGraw-Hill Publishers).
A. Myrick Freeman, III (1983).  Intermediate Microeconomic Analysis.  (New York:  Harper and Row).
David D. Friedman (1987).  Price Theory.  (Cincinnati:  Southwestern Publishing Company).
Lee S. Friedman (1982).  Microeconomic Policy Analysis.  (New York:  McGraw-Hill).
Fred R. Glahe and Dwight R. Lee (1980).  Microeconomics:  Theory and Applications.  (New York:  Harcourt Brace Jovanovich).
H. Gravelle and R. Rees (1985, 1981).  Microeconomics.  (New York:  Longman).
J.P. Gould and C.E. Ferguson (1984).  Microeconomic Theory, fifth edition.  (Homewood, Illinois:  Richard D. Irwin, Inc.).
John M. Heinecke (1976).  Microeconomics for Business Decisions:  Theory and Applications.  (Englewood Cliffs, New Jersey:  Prentice-Hall).
James M. Henderson and Richard M. Quandt (1980).  Microeconomic Theory:  A Mathematical Approach, third edition.  (New York:  McGraw-Hill).
Jack Hirshleifer, Amihai Glazer, and David Hirshleifer (2007).  Price Theory and Applications, seventh edition.  (New York:  Cambridge University Press).
David N. Hyman (1993).  Modern Microeconomics:  Analysis and Applications, third edition.  (Homewood, Illinois:  Richard D. Irwin)
David M. Kamerschen and L.M. Valentine (1977).  Introductory Microeconomic Theory.  (Cincinnati, Ohio:  Southwestern Publishing Company).
Michael L. Katz and Harvey S. Rosen (1994).  Microeconomics, second edition.  (Homewood, Illinois:  Irwin Publishers).
Paul G. Keat and Philip K.Y. Young (2000).  Managerial Economics, third edition.  (Upper Saddle River, N.J.:  Prentice-Hall).
David Keating and J. Holten Wilson (1987).  Fundamentals of Managerial Economics.  (New York:  Harcourt Brace Jovanovich).
Heinz Kohler (1990).  Intermediate Microeconomics:  Theory and Applications, third edition. (Glenview, Illinois:  Scott, Foresman and Company).
David M. Kreps (1990).  A Course in Microeconomic Theory. (Princeton, N.J.:  Princeton University Press).
Steven E. Landsburg (1992).  Price Theory and Applications, second edition.  (New York:  The Dryden Press, 1992).
Richard H. Leftwich and Ross Eckert (1988).  The Price System and Resource Allocation, tenth edition.  (Hinsdale, Illinois:  The Dryden Press).
Aroop K. Mahanty (1980).  Intermediate Microeconomics with Applications.  (New York:  Academic Press).
Edmund Malinvaud (1972).  Lectures on Microeconomic Theory.  (Amsterdam:  North-Holland Publishing Company)
Edwin Mansfield (1991).  Microeconomics:  Theory and Applications, seventh edition.  (New York:  W.W. Norton and Company).
Andreu Mas-Colell, Michael D. Whinston and Jerry R. Green (1995).  Microeconomic Theory.  (New York:  Oxford University Press).
Donald M. McCloskey (1985).  The Applied Theory of Price, second edition.  (New York:  Macmillan Publishing Company).
Robert A. Meyer (1976).  Microeconomic Decisions.  (Boston:  Houghton Mifflin).
Roger Leroy Miller and Roger E. Meiners (1986).  Intermediate Microeconomics:  Theory, Issues, and Applications, third edition.  (New York:  McGraw-Hill).
Edwin Mansfield (1994).  Microeconomics, eighth edition.  (New York:  W.W. Norton & Company).
Walter Nicholson (1992).  Intermediate Microeconomics and Its Applications, fifth edition.  (Hinsdale, Illinois:  The Dryden Press).
Walter Nicholson (1995).  Microeconomic Theory:  Basic Principles and Extensions, sixth edition.  (Orlando, Florida:  The Dryden Press).
Robert Pindyck and Daniel Rubinfeld (2005).  Microeconomics, sixth edition.  (Englewood Cliffs, N.J.:  Prentice-Hall).
R. Stephen Polkinghorn (1979).  Micro-Theory and Economic Choices.  (Homewood, Illinois:  Richard D. Irwin, Inc.).
Ivan Png and Dale Lehman (2007).  Managerial Economics (New York:  Blackwell Publishing).
Jonas Prager (1993).  Applied Microeconomics:  An Intermediate Text.  (Homewood, Illinois:  Richard D. Irwin, Inc.).
Ramon Rabinovitch (1995).  Managerial Economics:  Theory and Its Applications.  (Boulder, Colorado:  Kolb Publishing Company).
Roy J. Ruffin (1992).  Intermediate Microeconomics, second edition.  (New York:  Harper Collins Publishers).
Dominick Salvatore (1991).  Microeconomics:  Theory and Applications.  (New York:  Harper Collins).
William F. Samuelson and Stephen G. Marks (1999).  Managerial Economics, third edition.  (Orlando, Florida:  The Dryden Press).
Andrew Schotter (1994).  Microeconomics:  A Modern Approach.  (New York:  HarperCollins Publishers).
George J. Stigler (1987).  The Theory of Price, fourth edition.  (New York:  Macmillan Publishing Company).
Henri Theil (1980).  The System-Wide Approach to Microeconomics.  (Chicago:  University of Chicago Press).
Lila J. Truett and Dale B. Truett (1984).  Intermediate Microeconomics.  (St. Paul, Minnesota:  West Publishing Company).
Hal Varian (1992).  Microeconomic Analysis, third edition.  (New York:  W.W. Norton and Company, 1992).
Hal Varian (1996).  Intermediate Microeconomics, fourth edition  (New York:  W.W. Norton and Company, 1996).

II.  Theory of Demand:  Consumers, Rationality, and Individual Choice
John S. Chipman, Leonid Hurwicz, Marcel K. Richter, and Hugo F. Sonnenschein (1971).  Preferences, Utility, and Demand.  (New York:  Harcourt, Brace, and Jovanovich, 1971).
Gerard Debreu (1959).  Theory of Value.  (New Haven:  Yale University Press, Cowles Foundation for Publications in Economics, 1959).
John R. Hicks (1965, 1946).  Value and Capital, second edition.  (Oxford:  The Clarendon Press, 1965 reprint of 1946 edition).
John R. Hicks (1965, 1956).  A Revision in the Theory of Consumer Demand.  (Oxford:  Oxford University Press, 1965 reprint of 1956 edition).
Eugenio Slutsky (1952, 1915).  "On the Theory of the Budget of the Consumer", English translation of 1915 article in Italian, in George J. Stigler and Kenneth E. Boulding, editors, Readings in Price Theory.  (Homewood, Illinois:  Richard D. Irwin, Inc., 1952), pp. 27-56.

III.  Theory of Supply:  Firms, Technology, and Costs
Judy S. Wang Chiang and Ann F. Friedlaender (1985).  "Truck Technology and Efficient Market Structure," Review of Economics and Statistics 67, 250-58.
Laurits Christensen and William H. Greene (1976). "Economies of Scale in U.S. Electric Power Generation," Journal of Political Economy 84, 655-76.
Richard M. Cyert and John G. March (1963).   A Behavioral Theory of the Firm.  (Englewood Cliffs, New Jersey:  Prentice-Hall).
Melvyn Fuss and Daniel McFadden, editors (1978).  Production Economics:  A Dual Approach to Theory and Applications.  (Amsterdam:  North-Holland Publishing Company).
Douglas A. Irwin and P.J. Klenow (1994). "Learning-by-Doing Spilovers in the Semiconductor Industry, "Journal of Political Economy 102 (December), 1200-27.
Richard E. Just, David Zilberman, and Eithan Hochman (1983). "Estimation of Multicrop Production Functions," American Journal of Agricultural Economics 65, 770-80.
Ronald W. Shephard (1981, 1953).  Cost and Production Functions.  (New York:  Spring Verlag, 1981 reprint of 1953 Princeton University Press edition).
Ronald W. Shephard (1970).  Theory of Cost and Production Functions.  (Princeton:  Princeton University Press).

IV.  Market Structure and General Equilibrium
A. Market Structure
Dixie M. Blackley (1999). "The Long-Run Elasticity of New Housing Supply in the United States:  Empirical Evidence for 1950 to 1994," Journal of Real Estate Finance and Economics 18, 25-42.
Gail L. Cramer and Clarence W. Jensen (1985).  Agricultural Economics and Agribusiness.  (New York:  John Wiley and Sons).
Augustin Cournot (1897, 1838).  Recherches into the Mathematical Principles of the Theory of Wealth, translated from the French by Nathaniel T. Bacon.  (New York:  Macmillan Publishing Company, 1897, published originally in French, in 1838).
Franklin M. Fisher, Paul H. Cootner, and Martin N. Baily (1972).  "An Econometric Model of the World Copper Industry," Bell Journal of Economics 3 (Autumn), 568-609.
James M. Griffin and David J. Teece (1982).  OPEC Behavior and World Oil Prices (London:  Allen and Unwin). 
Michael D. Intriligator (1972).  Mathematical Optimization in Economic Theory.  (Englewood Cliffs, New Jersey:  Prentice-Hall).
Morton I. Kamien and Nancy L. Schwartz (1982).  Market Structure and Innovation.  (New York:  Cambridge University Press).
Morton I. Kamien and Nancy L. Schwartz (1981).  Dynamic Optimization:  the Calculus of Variations and Optimal Control in Economics and Management.  (New York:  North-Holland Publishing Company).
David Kreps and José Scheinkman (1983). "Quantity Precommitment and Bertrand Competition Yield Cournot Outcomes," Bell Joural of Economics 14, 326-338.
Steven H. Lustgarten (1975). "The Impact of Buyer Concentration in Manufacturing Industries," Review of Economics and Statistics 57 (may), 125-32.
John McMillan (2002).  Reinventing the Bazaar:  A Natural History of Markets (New York:  W.W. Norton).
Steven Morrison and Clifford Whinston (1986).  The Economic Effects of Airline Deregulation.  (Washington, D.C.:  The Brookings Institution).
Thomas Nagle and Reed Holden (2002).  The Strategy and Tactics of Pricing, 3rd ed. (Upper Saddle River, N.J.:  Prentice Hall). 
Aviv Nevo and Catherine Wolfram (2002). "Prices and Coupons for Breakfast Cereals," Rand Journal of Economics 33, 319-39.
Walter Oi (1971). "A Disneyland Dilemma:  Two-Part Tariffs for a Mickey Mouse Monopoly," Quarterly Journal of Economics (February), 77-96.
Robert S. Pindyck (1979). The Structure of World Energy Demand. (Cambridge, Mass.:  MIT Press).
Robert S. Pindyck (1985).  "The Measurement of Monopoly Power in Dynamic Markets," Journal of Law and Economics 28 (April), 192-222.
Nancy L. Rose (1990). "Profitability and Product Quaity:  Economic Determinants of Airline Safety Performance," Journal of Political Economy 98 (October), 944-64.
Frederic Scherer (1980).  Industrial Market Structure and Economic Performance, second edition.  (Boston:  Houghton Mifflin Publishing Co.).
Richard L. Schmalensee (1982). "Commodity Bundling by Single-Product Monopolies," Journal of Law and Economics 25 (April), 67-71.
William G. Shepherd (1984).  "Contestability versus Competition" American Economic Review 74:4 (September), pp. 572-587.
Michael Spence (1974).  Market Signaling.  (Cambridge:  Harvard University Press).
Oliver Williamson (1975).  Markets and Hierarchies.  (Glencoe, Illinois:  The Free Press).

B.  General Equilibrium Analysis
Kenneth J. Arrow and Frank H. Hahn (1971).  General Competitive Analysis.  (San Francisco:  Holden-Day Publishing Company).
Gerard Debreu (1973, 1959).  Theory of Value:  An Axiomatic Analysis of Economic Equilibrium.  (New Haven:  Yale University Press for the Cowles Foundation for Research in Economics)
Robert Dorfman, Paul Samuelson, and Robert Solow (1958).  Linear Programming and Economic Analysis.  (New York:  McGraw-Hill Publishing Co.).
Hollis B. Chenery and Paul G. Clark (1959).  Interindustry Economics.  (New York:  John Wiley and Sons).
John D. Hey (1981).  Economics in Disequilibrium.  (New York:  New York University Press).
Robert E. Kuenn (1963).  A Theory of General Economic Equilibrium.  (Princeton:  Princeton University Press).
Wassily W. Leontief (1966).  Input-Output Economics.  (New York:  Oxford University Press).
William A. Miernyk (1965).  The Elements of Input-Output Analysis.  (New York:  Random House Publishers).
James Quirk and Ruben Saposnik (1968).  Introduction to General Equilibrium Theory and Welfare Economics.  (New York:  McGraw-Hill).
Herbert Scarf and John B. Shoven (1973).  The Computation of Economic Equilibrium.  (New Haven:  Yale University Press).
Herbert Scarf and John B. Shoven (1984).  Applied General Equilibrium Analysis.  (New York:  Cambridge University Press).

C.  Uncertainty in Economic Decisions
George A. Akerlof (2002). "Behavioral Macroeocnomics and Macroeconomic Behavior," American Economic Review 92 (June), 411-33.
Robert Axelroad (1984).  The Evolution of Cooperation.  (New York:  Basic Books).
Patrick Bajari and Ali Hortaçsu (2004), "Economic Insights from Internet Auctions," Journal of Economic Literature 42 (June), 457-86.
H. Scott Bierman and Luis Fernandez (1993).  Game Theory with Economic Applications.  (Reading, Mass.:  Addison-Wesley Publishers).
Kenneth Binmore.  Fun and Games:  A Text on Game Theory.  (Lexington, Mass.:  D.C. Heath & Company, 1992).
Morton D. Davis (1973).  Game Theory:  A Nontechnical Introduction.  (New York:  Harper and Row Torchbooks).
Avinash Dixit and Susan Skeath (2004).  Games of Strategy, 2nd ed.  (New York:  W.W. Norton).
Avinash K. Dixit and Robert St. Pindyck (1994).  Investment Under Uncertainty.  (Princeton, N.J.:  Princeton University Press).
James W. Friedman (1990).  Game Theory with Applications to Economics (New York:  Oxford University Press).
Drew Fudenberg and Jean Tirole (1991). Game Theory. (Cambridge, Mass.:  MIT Press).
Henry Hamburger.  Games as Models of Social Phenomena.  (San Francisco:  W.H. Freeman and Co., 1979).
John D. Hey (1979).  Uncertainty in Economic.s (New York:  New York University Press).
Daniel Kahneman, Jack L. Knetsch, and Richard H. Thaler (1990). "Experimental Tests of the Endowment Effect and the Coase Theorem," Journal of Political Economy 98 (December), 1925-48.
Frank H. Knight (1921).  Risk, Uncertainty, and Profit.  (Boston, Mass.:  Houghton Mifflin Publishers).
Jean-Jacques Laffont (1980).  Essays in the Economics of Uncertainty.  (Cambridge:  Harvard University Press).
R. Duncan Luce and Howard Raiffa (1957).  Games and Decisions.  (New York:  John Wiley and sons).
Paul Milgrom (1989), "Auctions and Bidding:  A Primer," Journal of Economic Perspectives (Summer), 3-22.
Hervé Moulin (1982).  Game Theory for the Social Sciences.  (New York:  New York University Press).
A.	Mitchell Polinsky and Steven Shavell (1979).  "The Optimal Tradeoff Between the Probability and the Magnitude of Fines," American Economic Review 69 (December), 880-91.
B.	Thomas Schelling (1980).  The Strategy of Conflict.  (Cambridge, Mass.:  Harvard University Press).
Robert Shiller (2000). Irrational Exuberance.  (Princeton, N.J.:  Princeton University Press).
Martin Shubik (1982).  Game Theory in the Social Sciences (Cambridge, Mass.:  MIT Press).
Amos Tversky and Daniel Kahneman (1974). "Judgment under Uncertainty: Heuristics and Biases," Science 185 (September), 1124-31.

D. Factor Markets
David Card and Alan Krueger (1994). "Minimum Wages and Employment:  A Case Study of the Fast-Food Industry in New Jersey and Pennsylvania," American Economic Review 84 (September). 
Donald Deere, Kevin M. Murphy, and Finish Welch (1995). "Employment and the 1990-1991 Minimum Wage Hike," American Economic Review, Papers and Proceedings 85 (May), 232-37.
Mark K. Dreyfus and W. Kip Viscusi (1995). "Rates of Time Preference and Consumer Valuations of Automobile Safety and Fuel Efficiency," Journal of Law and Economics 38 (April), 79-105.
Jerry A. Hausman (1979), "Individual Discount Rates and the Purchase and Utilization of Energy-Using Durables," Bell Journal of Economics 10 (Spring) 33-54.
Charles Himmelberg, Christopher Mayer and Todd Sinai (2005). "Assessing High House Prices:  Bubbles, Fundamentals and Misperceptions," Journal of Economic Perspectives (Fall).
Janet E. Kohlhase (1986), "Labor Supply and Housing Demand for One-and Two-Earner Households," Review of Economics and Statistics 68 , 48-56.
Harold Hotelling (1931). "The Economics of Exhaustible Resources," Journal of Political Economy 39 (April), 137-175.
Jeffrey K. MacKie-Mason and Robert S. Pindyck (1986).  Energy:  Markets and Regulation. (Cambridge, Mass:  MIT Press).

V. Welfare Economics
Kenneth J. Arrow(1951).  Social Choice and Individual Values.  (New Haven:  Yale University Press).
Elizabeth E. Bailey (1973).  Economic Theory of Regulatory Constraint.  (Lexington, Massachusetts:  D.C. Heath).
Francis M. Bator (1957).  "The Simple Analytics of Welfare Maximization", American Economic Review 47:1 (March), pp. 22-59.
Francis M. Bator (1958).  "Anatomy of Market Failure", Quarterly Journal of Economics 72:3 (August).
William Baumol (1965, 1949).  Welfare Economics and the Theory of the State.  (Cambridge:  Harvard University Press).
D. Gale Johnson (1985).  Agricultural Policy and Trade.  (New York:  New York University Press).
Robert Nozick (1974).  Anarchy, State, and Utopia.  (New York: Basic Books).
John Rawls (1971).  A Theory of Justice (Cambridge, Mass.:  Harvard University Press).
Frederic M. Scherer (1992). "The United States Sugar Program," (Cambridge, Mass.:  Kennedy School of Government Case Study, Harvard University).
Daniel A. Sumner and Michael K. Wohlgenant (1985). "Effects of an Increase in the Federal Excise Tax on Cigarettes," American Journal of Agricultural Economics 67 (May), 235-242.
Robert D. Tollison and Roger D. Congleton (1995).  The Economic Analysis of Rent Seeking. (Brookfield, Vermont:  Edward Elgar Publishing).
Gordon Tullock (1993).  Rent Seeking. (Brookfield, Vermont:  Edward Elgar Publishing).
Finis Welch (1999).  "In Defense of Inequality," American Economic Association, Papers and Proceedings 89 (May), 1-17.

VI. Microeconomic Data Source Materials 
	(see:  Useful Economic Data Links)

VII.	Publication Sources
A.	 Economic Journals (selected listing)

  Agricultural and Resources Economics
	Agricultural Economics
	American Economic Review
	American Economist
	American Journal of Agricultural Economics
	Antitrust Bulletin
	Applied Economics
	Brookings Papers on Economic Activity
	Bulletin of Economic Research
	Business Economics
	Computational Economics
	Eastern Economic Journal
	Economic Development and Cultural Change
	Economic Geography
	Economic History Review
	Economic Inquiry
	Economic Journal
	Economics of Education Review
	Economics Letters
	Econometrica
	Energy Economics
	Environment and Development Economics
	Environment and Resource Economics
	Family Economics and Nutrition Review
	Games and Economic Behavior
	Health Economics
	History of Political Economy
	Industrial and Labor Relations Review
	Information Economics and Policy
	Journal of African Economics
	Journal of Agricultural and Applied Economics
	Journal of Agricultural and Resource Economics
	Journal of Banking and Finance
	Journal of Business
	Journal of Cultural Economics
	Journal of Development Studies
	Journal of Economic Issues
	Journal of Economic Literature
	Journal of Economic Perspectives
	Journal of Financial Services Research
	Journal of Futures Markets
	Journal of Health Economics
	Journal of Human Resources
	Journal of Political Economy
	Journal of Population Economics
	Journal of Risk and Insurance
	Land Economics
	Marine Resource Economics
	Public Choice
	Quarterly Journal of Economics
	Real Estate Economics
	Resource and Energy Economics
	Review of Economics and Statistics
	World Development