Lecture 1: Introduction to Advanced Economic Theories

Business & Economics - 12 slides

This lecture provides a foundational overview of economics, covering key theories such as utility theory, market structures, and game theory. It highlights the evolution of classical economic principles into modern considerations, with a focus on concepts like Pareto efficiency and Nash equilibrium

Topics Covered

  • Introduction to Economics and Foundational Theories
  • Utility Theory: Rational Consumer Choice
  • Market Structures: Competitive Dynamics
  • Game Theory: Strategic Decision-Making
  • Pareto Efficiency: Allocative Optimality in Economics
  • Interplay Between Game Theory and Market Structures
  • The Evolution of Market Failures: Externalities and Public Goods
  • Market Power and Monopoly Pricing
  • Nash Equilibrium: Strategic Stability
  • Intersection of Behavioral Economics and Traditional Theory
  • Applications of Economic Theory in Modern Business
  • Conclusion: Connecting Foundations to Modern Innovations

References

  • Smith, A. (1776) The Wealth of Nations. London: W. Strahan and T. Cadell.
  • Mankiw, N.G. (2021) Principles of Economics. 9th edn. Boston: Cengage Learning.
  • Bentham, J. (1789) An Introduction to the Principles of Morals and Legislation. London: T. Payne and Son.
  • Marshall, A. (1890) Principles of Economics. London: Macmillan and Co.
  • Kreps, D.M. (1990) A Course in Microeconomic Theory. Princeton: Princeton University Press.
  • Von Neumann, J. and Morgenstern, O. (1944) Theory of Games and Economic Behavior. Princeton: Princeton University Press.
  • Nash, J.F. (1950) 'Equilibrium points in n-person games', Proceedings of the National Academy of Sciences, 36(1), pp. 48–49.
  • Pareto, V. (1906) Manual of Political Economy. 1st edn. Milan: Società Editrice Libraria.
  • Tirole, J. (1988) The Theory of Industrial Organization. Cambridge: MIT Press.
  • Brandenburger, A.M. and Nalebuff, B.J. (1996) Co-Opetition. New York: Doubleday.
  • Pigou, A.C. (1920) The Economics of Welfare. London: Macmillan.
  • Samuelson, P.A. (1954) 'The pure theory of public expenditure', The Review of Economics and Statistics, 36(4), pp. 387–389.
  • Stigler, G.J. (1949) 'The Theory of Price', Journal of Political Economy, 57(6), pp. 421–433.
  • Sherman Antitrust Act (1890), U.S. Code.
  • Nash, J.F. (1950) 'Equilibrium points in n-person games', Proceedings of the National Academy of Sciences, 36(1), pp. 48-49.
  • Binmore, K. (2007) Playing for Real: A Text on Game Theory. Oxford: Oxford University Press.
  • Kahneman, D. and Tversky, A. (1979) 'Prospect Theory: An Analysis of Decision under Risk', Econometrica, 47(2), pp. 263-291.
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