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Hal Varian - Intermediate Microeconomics

Varian

Intermediate

Microeconomics

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Hal Varian - Intermediate Microeconomics

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The Market 1

The Market

A. Example of an economic model --- the market for

apartments

1. models are simplifications of reality

2. for example, assume all apartments are identical

3. some are close to the university, others are far

away

4. price of outer-ring apartments is exogenous ---

determined outside the model

5. price of inner-ring apartments is endogenous ---

determined within the model

B. Two principles of economics

1. optimization principle --- people choose actions

that are in their interest

2. equilibrium principle --- people’s actions must

eventually be consistent with each other

C. Constructing the demand curve

1. line up the people by willingness-to-pay. See

Figure 1.1.

2. for large numbers of people, this is essentially a

smooth curve as in Figure 1.2.

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The Market 2

......

RESERVATION

PRICE

500

490

480

...

Demand curve

NUMBER OF APARTMENTS

Figure 1.1

D. Supply curve

1. depends on time frame

2. but we’ll look at the short run --- when supply of

apartments is fixed.

E. Equilibrium

1. when demand equals supply

2. price that clears the market

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The Market 3

Demand curve

RESERVATION

PRICE

NUMBER OF APARTMENTS

Figure 1.2

F. Comparative statics

1. how does equilibrium adjust when economic

conditions change?

2. ‘‘comparative’’ --- compare two equilibria

3. ‘‘statics’’ --- only look at equilibria, not at

adjustment

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The Market 4

Demand

RESERVATION

PRICE

NUMBER OF APARTMENTS

Old

supply

New

supply

Old p*

New p*

Figure 1.5

4. example --- increase in supply lowers price; see

Figure 1.5.

5. example --- create condos which are purchased by

renters; no effect on price; see Figure 1.6.

G. Other ways to allocate apartments

1. discriminating monopolist

2. ordinary monopolist

3. rent control

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The Market 5

RESERVATION

PRICE

NUMBER OF APARTMENTS

Old

supply

New

supply

Old

demand

New

demand

Figure 1.6

H. Comparing different institutions

1. need a criterion to compare how efficient these

different allocation methods are.

2. an allocation is Pareto efficient if there is no way

to make some group of people better off without

making someone else worse off.

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2013-05-21

很好的资源，十分感谢
lili2401040235

2014-10-23

最经典的中级微观经济学教材

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