1)      Production Possibilities Frontier 
                       http://isc.temple.edu/economics/econ52/Outlines/PPF-remarks.htm

 i)        Characteristics

ii)       Benefits from Specialization

iii)     Benefits from Trade

iv)     Supply Curve from the PPF: Opportunity Cost: Individually and Collectively

v)      T, P and N's demand for fish: Marginal Benefit: Individually and Collectively 

2)      Supply and Demand: Supply and Demand: Equilibrium, Taxes, Surpluses and Shortages

i)        Equilibrium

ii)       The gain from trade: Economic Surplus

(a)    Price = Social MC = Social MB

(b)   Consumer Surplus

(c)    Producer Surplus

Schenk on Producer Surplus

Total Surplus

Monday, January 31, Last Day to Drop

iii)     Inefficiencies and Market Failure
            Price Ceilings and Floor
            Price Ceiling
            Price Floor 
(a)    Taxes: Excise and Ad Valorum
            An example exercise
            Taxes: Who Pays?
            Taxes and Elasticities
(b)   Imperfections on the Supply Side
1.      Monopoly
            A simple example
2.      Labor Mkts
           

Schenk on elasticity

Schenk on Monopoly

(c)    Imperfections in the Goods Offered
1.      Externalities
           

2.      Excludability and Rivalry in Consumption  A Public Goods Exercise
i.         Private Goods,
ii.       Commons Goods,
iii.      Collective Goods and
iv.     Public Goods

The Invisible Hand & Pigou

Commons Goods

Club Goods

Fibonacci Pizza due September 30.

An answer key.

EXAM 1

Game Theory
1)      Introduction

            http://isc.temple.edu/economics/Econ_92/Game_Lectures/1st-Look/introduction_to_game_theory.htm

2)      Solving Games
a)      Dominant Strategies

      http://isc.temple.edu/economics/Econ_92/Game_Lectures/2nd-StratForm/StratForm.htm

b) Iterative Elimination of Dominated Strategies

      http://isc.temple.edu/economics/Econ_92/Game_Lectures/3rd-DomSolve/Solvability.htm

      http://isc.temple.edu/economics/Econ_92/Game_Lectures/3rd-DomSolve/Bertrand.htm

c) Best Response and Nash Equilibrium

      http://isc.temple.edu/economics/Econ_92/Game_Lectures/4th-Nash/NashEq.htm

Examples: Felix and Oscar  and Pan Pizza and Zero Sum Games

      http://isc.temple.edu/economics/Econ_92/Game_Lectures/4th-Nash/cola_wars.htm

      http://isc.temple.edu/economics/Econ_92/Game_Lectures/5th-Lecture/Commons_Tragedy.htm

      http://isc.temple.edu/economics/Econ_92/Nash/MovieCritique.htm

d) Some Classic Strategic Form Games

      http://isc.temple.edu/economics/Econ_92/Game_Lectures/7a-classic-games/ClassicGames.htm

 Spring Break

1)      Mixed Strategies

a)      An Introduction to Probability http://isc.temple.edu/economics/Econ_92/Game_Lectures/Probability/descprob.htm

b) Mixed Strategies
http://isc.temple.edu/economics/Econ_92/Game_Lectures/6th-MixedStrat/mixed_strategies.htm

http://isc.temple.edu/economics/Econ_92/Game_Lectures/7th-MixedApps/mixed_strategy.htm

Mixed Strategy Applications

2. Battling Brewers
3. Battle of the Sexes
4. Monopoly: The Browser Wars
    

2)      Extensive Form Games
http://isc.temple.edu/economics/Econ_92/Game_Lectures/8th-ExtensiveForm/solving_extensive_form_games.htm

Kuhn's Theorem

IEDS and Backward Induction

More Backward Induction

Perfect Information in Extensive Form

Poison Pills

a)      Sub-games and sub-game perfection

PlayBox and X-Station

http://isc.temple.edu/economics/Econ_92/Game_Lectures/9th-SubGPerfEq/SubGame.htm

      http://courses.temple.edu/economics/Econ_92/Game_Lectures/9th-SubGPerfEq/george_and_gina.htm
 

Buck's Bolts

b) Threats and Commitments

Soda and dating

Kidnapped by Robert Louis Stevenson

Browser Wars Again

Key

Key

2nd Exam

March 30 and April 1

1)      Games with Imperfect Incomplete Information

a)      Static
http://courses.temple.edu/economics/Econ_92/Game_Lectures/10th-IncompInfoStatic/incomplete_info_01.htm

Another Static Information Example

A prior problem set.  Don't submit this!

The market for lemons

Harry Sells Edith His Car

Amanda Reckonwith Hires Angie O'Plasty

and Key

Extra Credit: Harry and Edith due on 12/16/2009

Final Exam