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ECONOMICS E-1010 FALL 2013 W 5:30-7:30PM, in 1 Story Street, Room 304 Section: TH 5:30-6:30 PM, TBA HARVARD EXTENSION SCHOOL ROBERT NEUGEBOREN
neugebor@fas.harvard.edu

TA: RAJIV SHANKAR

rshankar@fas.harvard.edu

MICROECONOMIC THEORY
http://isites.harvard.edu/k97321 DESCRIPTION Economics E-1010 presents the basic analytical tools of microeconomics. We will start by considering the behavior of individual consumers and construct a theoretical model of consumer optimization under constraint. Next, we will look at how firms make and coordinate their decisions under varying market structures, including perfect competition and monopoly, and consider the welfare implications. Then we will look at strategic behavior in imperfectly competitive markets, making use of concepts from game theory such as Nash equilibrium. Finally, we will take up additional topics including decision under uncertainty, bargaining theory, externalities, and public goods. Econ E-1010 is taught at the intermediate level and is appropriate for students who have already completed a first-year principles course in microeconomics. Mathematical preparation at the level of college algebra is a prerequisite, and familiarity with first-year calculus will be of help. Students will learn the key tools and principles economists apply to understand a wide range of phenomena, using graphical representations, some math, and plain logic to present the important ideas and solve basic microeconomic problems. REQUIREMENTS 10% 20% 30% 40% Sections Problem Sets Midterm Exam Final Exam Includes weekly attendance and participation. 4 problem sets due every 2-3 weeks. 2-hour exam, October 16. 2-hour exam, December 18.

TEXTBOOKS There are several good textbooks on intermediate microeconomics. Either of the following is recommended for this course (purchase only one): Besanko & Braeutigam, Microeconomics (Wiley). Pindyck & Rubinfeld Microeconomics (Prentice Hall). An alternative text that is also very good but more mathematical is, Varian, Intermediate Microeconomics (Norton). Students are expected to read the assigned chapters before the corresponding class session. Consider the text to be a reference only; your main focus should be on the material presented in lecture and section, and available on PowerPoint slides and the lecture and section videos. You will not be responsible on problem sets or on exams for material in any textbook that we have not covered in class.

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COURSE POLICIES Academic Honesty Harvard takes matters of academic honesty very seriously. While you are encouraged to discuss assignments with your classmates and others, you must acknowledge any help you receive, and you must make sure any written material you submit is your own work. Use of old course materials, including exams and problem sets from previous terms and online sources, is strictly prohibited. You should consult the Harvard Extension School website http://www.extension.harvard.edu/exams-grades-policies/student-responsibilities (especially the section entitled Academic Integrity) to familiarize yourself with the possible serious consequences of academic dishonesty. Attendance Students are expected to be active and engaged participants. All students registered for undergraduate or graduate credit must attend all classes or participate online as a distance student, answer all problem sets, take all exams, and complete all coursework on time. Since this is a hybrid-distance course, you may attend weekly lectures on campus, or you may watch the weekly videos at home. Section attendance is mandatory: if you cannot attend section in person, there will be a weekly question based on section material that must be answered to receive credit for attending that weeks section. In addition, sections will be especially helpful in preparing for problem sets and reviewing for exams. The quality of your section experience depends heavily on the involvement of other students. As such, fostering a supportive, cooperative environment will be essential. Part of your section grade will be based on your contribution to the learning environment in the classroom. Exams For students living in the six-state New England area: All students living in the six-state New England area must attend the exams in person. Be sure to arrange your schedule to allow for these dates. For distance students who live outside the six-state New England area: Students in this category can take exams near where they live or work. Arrangements for all exams are made in accordance with the procedures outlined at: http://www.extension.harvard.edu/distance-education/how-distance-education-works/academicpolicy-exam-proctoring. Please note that most distance students find it quite easy to arrange to take their exams where it is convenient for them. Hence, you should not let this bit of logistics deter you in any way from taking this or any other distance class. IMPORTANT: It is your responsibility to plan your travel around exam dates. In particular, the date of the final exam is determined by the Registrar and cannot be changed, except by a formal appeal process through the Extension Schools Office of Academic Services. No makeup midterm exams will be given. Please see the section below on Grading to understand how your semester grade will be determined if you must miss the midterm for any reason.

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Problem Sets Problem sets must be submitted via the dropboxes on the course website, which automatically close at midnight on the assigned date. No problem sets will be accepted by any other means: email, fax, mail, etc. Please make sure that you understand how the system works well before the deadline, so that you dont miss it for any reason. Late problem sets will not be accepted. MATH HELP ECON E-1010 is taught at the intermediate level and the lectures, sections, problem sets, and exams will utilize a significant amount of college algebra. Because this level of math is a prerequisite for the course, we will not have time to review college algebra in class. Students who want to brush up are suggested to try the Khan Academy (www.khanacademy.org), which provides free online tutorials covering a range of topics in mathematics. Tutorials are also available on topics in calculus (we use partial derivatives), and links are provided on the course website. WEBSITE AND TECHNICAL SUPPORT The course website is a very useful place for you to visit. All official course announcements (e.g., deadlines, class cancellations, etc.) will appear on the homepage, and all lecture slides, lecture and section videos, assignments, and answer keys will also be posted there. In addition, all problems sets must be submitted via a dropbox on the website. There is also a discussion section and links to other useful online resources. Technical Help For students experiencing difficulties accessing or viewing the course website or videos, technical online support is available at dce-distance-ed@harvard.edu, or you can call (617) 495-4024 Mondays through Fridays, 9 am to 5 pm; (617) 495-5485 evenings and weekends. More information is available on the course website. Textbook Support Other helpful resources may be found on the publishers websites at http://www.prenhall.com/pindyck or http://www.wiley.com/besanko including practice problems, electronic readings, as well as other useful material.

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ECONOMICS E-1010 FALL 2013

WEEKLY LECTURE SCHEDULE

Assigned weekly readings to be read before each lecture. UNIT I
9/4 9/11 9/18 Introduction: What is Microeconomics? Theory of the Consumer Individual and Market Demand

CONSUMER THEORY Pindyck & Rubinfeld Besanko

Chs. 1-2 3 4 1-2 3-4 5

UNIT II
9/25 10/2 10/9 Theory of the Firm Profit Maximization Perfect Competition

FIRMS & MARKETS

6 7 8-9 6-7 8 9-10, 16

10/16 UNIT III

10/23 10/30 11/6

MIDTERM EXAM PRICING & COMPETITIVE STRATEGY

Monopoly and Market Power Duopoly Strategic Behavior 10-11 12 13 11-12 13 14

UNIT IV
11/13 11/20 12/4 12/11 Decision under Uncertainty Bargaining Externalities and Public Goods Review

INFORMATION & WELFARE

5 17 16, 18 15 15-16 17

12/18

FINAL EXAM