General information

Ennio E. Piano, Department of Economics and F.A. Hayek Program, George Mason University,Buchanan Hall (formerly Mason Hall), D137-7.
epiano@gmu.edu
Office hours: Thursday, 9:00-10:30 AM or by appointment. Buchanan Hall, F.A. Hayek program office, D137-7.

Course objectives

The course is aimed at familiarizing the students with the basic tools of economic analysis, including the theory of consumer behavior, the theory of seller behavior, partial and general equilibrium theory, and game theory. The focus will be on the application of these tools to the analysis of human behavior in all its forms.

Prerequisites

Principles of Microeconomics (ECON 103), Principles of Macroeconomics (ECON 104), and one semester of calculus (MATH 108 or 133). I expect you to be familiar with the use of algebra to solve simple sets of simultaneous equations, graphing, and to understand the concept of a derivative. 

Readings

Required textbooks

Hirshleifer, J., Glaezer, D., and Hirshleifer, D. 2005. Price theory and applications: Decisions, markets, and information (7th edition). Cambridge University Press.

Articles

Allen, D. W. "Property rights, transaction costs, and Coase: One more time." (https://drive.google.com/file/d/0B3CY-zqfWBQCRTlLSDltcVJ2Vzg/view?usp=sharing)
Buchanan, J. M. "Cost and choice." (https://drive.google.com/file/d/0B3CY-zqfWBQCdnNXU3hOeEZzTTQ/view?usp=sharing)
Cowen, T. "Public goods." (https://drive.google.com/file/d/0B3CY-zqfWBQCZjJJdWpXREc0VVk/view?usp=sharing)
Shughart III, W. "Public Choice." (https://drive.google.com/file/d/0B3CY-zqfWBQCRlZpTG9DSjN1Q1U/view?usp=sharing)
Staten M. and Umbeck J. "Economic inefficiency." (https://drive.google.com/file/d/0B3CY-zqfWBQCQjlzUERzQnpWRlE/view?usp=sharing)
Varian, H. "How to build an economic model in your spare time." (https://drive.google.com/file/d/0B3CY-zqfWBQCMFY2dVlkYTBnMW8/view?usp=sharing)

Recommended readings

Alchian, A. A., and Allen, W. R. 1969. Exchange and production: Theory in use. Wadsworth.
David Friedman. Price Theory: An Intermediate Text. 1985. (Available free online: http://www.daviddfriedman.com/Academic/Price_Theory/PThy_ToC.html)

Scheduled outline

August 28th-30th

Class overview and introduction. Hirshleifer, chapter 1.

September 4th-6th

Preferences and choice. Hirshleifer, chapter 3; Buchanan, "Cost and choice."

September 11th-13th

Consumption and the derivation of the laws of demand. Hirshleifer, chapter 4. Quiz 1.

September 18th-20th

Demand theory, extensions. Hirshleifer, chapter 5. Quiz 2.

September 25ht-27th

Pure exchange. Hirshleifer, chapters 2 and 14. Quiz 3.

October 2nd-4th

Property rights, transaction costs, and the Coase theorem. Hirshleifer, chapter 14; Allen, D. W. "Property rights, transaction costs, and Coase: One more time." Quiz 4.

October 10th-11th

The economics of time. Hirshleifer, chapter 15. Quiz 5.

October 16th

Midterm review.

October 18th

Midterm.

October 23rd-25th

The theory of the firm and introduction to production theory. Hirshleifer, chapter 6.

October 30th-November 1st

The theory of the competitive firm. Hirshleifer, chapter 7. Quiz 6.

November 6th-8th

The theory of the monopolistic firm. Hirshleifer, chapter 8. Quiz 7.

November 13th-15th

Introduction to game theory and the theory of oligopoly. Hirshleifer, chapter 10. Quiz 8.

November 20th-27th

Welfare economics. Hirshleifer, chapter 16; Cowen, "Public goods;" Staten and Umbeck, "Economic inefficiency." Quiz 9.

November 29th-December 4th

Public choice theory and "How to build an economic model in your spare time!" Hirshleifer, chapter 17; Shughart, "Public choice." Quiz 10.

December 6th

Final review.

Other important dates

Grading

Your grade in this course consists of ten weekly quizzes (30%), a midterm exam (35%), and a final exam (35%).
Quizzes: Quiz questions are based on the assigned readings and lectures. This means you cannot and will not do well in this class unless you do the assigned readings and attend the lectures. The quizzes will always be taken on Wednesday. I will drop the lowest quiz grade to allow for unexpected events. No make-up quizzes are available. No exceptions. 
Midterm: The midterm date is October 16th. You cannot make-up the midterm under any circumstance. If you know ahead of time of some extenuating circumstance that will prevent you from taking the midterm, you must contact me ahead of time (i.e. at least 48 hours prior to the exam). In the event that you are excused from taking the midterm upon contacting me, I will shift your midterm grade towards your final (so your midterm will be worth 0% and your final 60%). If you do not contact me ahead of time and do not take the midterm, you will receive a zero. No exceptions. 
Final: The final exam date is to be announced. The final exam is comprehensive and you must take it on this date. If you know ahead of time of some extenuating circumstance that will prevent you from taking the final on the scheduled date, you must contact me ahead of time (i.e. at least one week prior to the exam). In the event that you are excused from taking the final on the scheduled date upon contacting me, we will arrange an alternate date. If you do not contact me ahead of time and do not take the final on the scheduled date, you will receive a zero. No exceptions.

The grading scale is as follows:

A+: 97-100%; A: 92-96%; A-: 88-91%; B+: 84-87%; B: 80-83%; B-: 76-79%; C: 70-75%; F:<70%.

Academic integrity

George Mason University’s Honor Code requires all community members to maintain the highest standards of academic honesty and integrity. Cheating, plagiarism, lying, and stealing are all prohibited. Honor Code violations will be reported to the Honor Committee. Plagiarism is not accepted (statements from Macon web site: http://mason.gmu.edu/montecin/plagiarism/htm#plagiarism). The use of electronic devices is prohibited during an exam or a quiz; failure to comply with this will result in your failure of the assignment and potentially the failure of the class. Make sure to familiarize yourself with the GMU Honor Code, which is stated in the George Mason University Undergraduate Catalog.