The Subject:

Microeconomic Theory provides the basic conceptual tools of economic analysis.  Topics covered this semester include consumer behavior, production, cost, game theory and equilibria.

The Course Format:

In this course, students attend two 80-minute classes each week lead by the faculty instructor, and one 80-minute discussion section lead by an advanced and well-qualified teaching assistant. The instructor will not present formal lectures; rather he will explain difficult concepts and lead students in a discussion of the material.  This system can be effective only if students review the assigned material, think about it, and come to each class with a good understand of material previously covered.  In the discussion sections, students will be asked to go to the blackboard to explain the solutions of assigned problems.

I plan to rely on my lecture notes for the structure of the course. I will distribute the notes in class and project them on a screen as I speak.  The will also become available on the web at

 http://www.bu.edu/econ/faculty/manove/EC701/

My notes will follow the general outline of the Mas-Colell textbook, which is highly inclusive and forms an excellent reference book.  I suggest that you read the MC book to fill in gaps in the lectures and to help you with material you do not understand.

Problem sets will be assigned each week.  Students are required to attend class.

The Textbook:

The required textbook for this course is:

Andreu Mas-Colell, Michael Whinston and Jerry Green, Microeconomic Theory, Oxford University Press.

The three authors were professors at Harvard during the 1990s. Mas-Colell returned to Barcelona in 1995, and became a professor at Universitat Pompeu Fabra. He is currently serving as a member of the government of the Catalonia (Spain). A short biography of Mas-Colell may be found here. Whinston is now a professor at Northwestern, and Green remains at Harvard.

The Course TA:

The course teaching assistant is Jonathan Treussard, now a third-year PhD student.  Jonathan was enrolled in my EC701 class two years ago, so you can be confident that he understands problems in learning the material from a student's point of view.  He is a very nice person in spite of being French (not his fault), and you will find him eager to help you.

How to Study:

Students in the Economics PhD program must gain a deep understanding of the material presented in this course. Students are sometimes tempted to apply a mechanical approach to the material, applying mathematics without thinking, or memorizing theorems and proofs.  This is not only a waste of time, but it ultimately leads to confusion and poor performance on examinations. Your goal should be to understand the concepts presented in the course, and you should learn to explain them to others (for example, parents, friends, dogs, and roommates). If you can explain the material we cover and do problems you haven't seen in advance, you will do well in the course.

In class, I will call on students frequently and ask questions.  I do not expect students to know all the answers (I certainly don't), but I do expect you to be well prepared. This course is cumulative: if you don't understand Monday's lecture, you will find it very difficult to understand Wednesday's.

How to Do Assigned Problems

You will be assigned a problem set every Wednesday and asked to turn in your answers no later than 2:00 pm on the following Tuesday.  Jonathan will return your corrected answers in the discussion section the next Friday.  Some of the problems will be taken from the textbook.  Other problems will be my own. Your performance in the problem sets will not be used in computing your course grade; however, failure to complete the problem sets (or copying your answers from others) will lower your course grade.

Problems are an important part of this course, and you should devote considerable attention to them. Solving problems is essential for preparing for examinations, because problem solving requires active rather than passive thought. Most of  the problems have already been solved by textbook authors, faculty and former students. It would not be difficult for your to obtain the solutions of other people.  However, completing your homework by copying the work of others would be a waste of your time, would not improve your performance on exams, and, if discovered, would be treated as plagiarism.  Nevertheless, students are encouraged to work together on assigned problems.  In the end, though, each of you must understand how the solution was obtained, and be able to explain it to other people.

Aside from the assigned problem sets, a number of my old EC701 exams are available here.  Solving the problems in these exams is excellent preparation from the exams I will give you this semester.  Take advantage of them.

How to Take Notes:

At the beginning of each class, I will usually distribute copies of the notes that I will project on the screen during that class. But these notes are only an outline. In order to study for the course effectively, you should plan to add your own comments in the margins of the notes I distribute or elsewhere. If your notes aren't very good, borrow notes from your classmates and copy them. (This is NOT cheating.) Unfortunately, studying from other people's notes is never as good as studying from your own. Finally, never try to memorize your notes; instead, use them to help you understand the material.

How to Get Help:

If you have difficulties with your work in EC701, please see me in office hours or make an appointment to see me at other times.  You may also see the Course TA, Jonathan Treussard.  If you are having difficulties with the program in general, please see the Director of Graduate Instruction, Pierre Perron.  For problems of a bureaucratic nature see the PhD Administrator, Janet Newhall.

Some students have personal problems that interfere with their ability to study and learn. If you have such problems, I urge you in the strongest possible terms to get help quickly. The university has extensive counseling resources, and students in need should be sure to take advantage of them. I would be happy to talk with you and help you find appropriate services, or you can find your own. The telephone number of the University's Counseling Clinic is 353-3569.

I cordially invite you to discuss economics or other subjects with me during my office hours or by appointment.

Buying the Textbooks:

The required textbook,
Andreu Mas-Colell, Michael Whinston and Jerry Green, Microeconomic Theory, Oxford University Press.
can be purchased in the Boston University Bookstore.  I am well aware that together the book is very expensive; however you should keep in mind that books represent a tiny fraction of the cost of education, and students who try to save money on books, often study less efficiently and risk wasting much larger sums.

Examinations and Grades:

I give two midterm examinations spaced about one month apart. Each midterm covers approximately 15 classes and the corresponding assigned reading and problems (see the Course Schedule). There is also a cumulative final examination. For each examination that you take, I will record a numerical score that ranges from 0 to 100. I may adjust raw examination scores upwards if I decide that the examination was difficult.

At the end of the semester, I will average your two midterm-examination scores (25% each), your final-examination score (50%) to derive a numerical course average, which again ranges from 0 to 100. I then translate the course average to a letter grade to be entered on your transcript.

If it improves your grade, I will automatically drop your lowest midterm score from the course average. In that case, I will base your course average on the remaining midterm score (35%), your final examination (65%).

Academic Calendar:

Instruction Begins	Tuesday, September 6, 2005
Holiday, Classes Suspended	Monday, October 10, 2005
Holiday, Classes Suspended	Friday, November 11, 2005
Fall Recess Begins	Wednesday, November 23, 2005
Instruction Resumes	Monday, November 28, 2005
Instruction Ends	Monday, December 12, 2005
Study Period	Tue, Dec 13, & Wed, Dec 14, 2005
Final Exams Begin	Thursday, December 15, 2005
Final Exams End	Wednesday, December 21, 2005

Rules and Regulations:

Class attendance is required; I will be less lenient in grading students who miss class.  You will not be excused from a midterm or final examination unless you: (1) provide documentary proof of illness, or, (2) demonstrate in advance, to my satisfaction, that unusual circumstance will prevent you from taking the examination. No makeup examinations are given in the event of unexcused absence or poor performance, but one missed midterm examination will be dropped from the course average, as explained above.

The CAS Academic Conduct Code will be strictly enforced.  Please read it carefully.

If you intend to travel home by air at the end of the semester, please be careful to reserve seats only for flights scheduled after your final examinations are completed. Make your reservations in September, because seats are scarce for flights during the Christmas Holidays.   No one will be permitted to take the final examination early; I never make exceptions to this rule.