These are the slides for my PhD micro course, formerly known as General Equilibrium.

The exams with solutions are available here.

A. The Matching Paradigm

• Nontransferable Utility
  • Stability and the Gale-Shapley Deferred Acceptance Algorithm
• Transferable Utility
  • Becker’s Conditions for Assortative Matching 
  • Monge-Kantorovich Transportation Problem and Shapley-Shubik Assignment Problem
  • Double Auctions

B. Partial Equilibrium

• Partial Equilibrium: Market Supply and Market Demand Curves
• Market Power: Monopoly, Monopsony, Cournot Duopoly
• Externalities; Pigouvian Taxes, Coase Theorem and Missing Markets
• Public Goods and Samuelson’s efficiency condition
• Price and Quantity Constraints

C. General Equilibrium

• … in an Exchange Economy
  • Edgeworth box analysis: Welfare theorems, market power
  • Tatonnement stability; Samuelson’s Correspondence Principle
  • Uniqueness via strategic complements
• With production: The Arrow – Debreu Existence Theorem
• Dynamic Stochastic General Equilibrium: Time and Uncertainty 
  • Contingent commodities, Spot markets, forward contracts and option
  • Risk Sharing: Idiosyncratic vs. Aggregate Risk
  • The Informational Content of Prices: Rational Expectations Equilibrium

D. Spatial Competition: Markets for Similar Goods

• Hotelling Location Model
• Chamberlin’s Monopolistic competition
• Rosen’s Hedonic Pricing

E. Implicit Markets

• Probabilities as Prices (College Rejection Rates, Lotteries)
• Hassle as a Price (the COVID Testing Market)