14.04 - Intermediate Microeconomic Theory
14.04 Intermediate Microeconomic Theory (Fall 2020, MIT OCW). Instructor: Prof. Robert M. Townsend. This course provides an introduction to theory and data designed to meet the needs of students interested in economic science. It provides an introduction to consumer choice, the theory of the firm, and general equilibrium models, with an overview of the main results and tools used in studying these topics, both directly in economics and indirectly in various other fields. This includes analysis of consumer and producer decisions, partial and general equilibrium analysis, insurance, the welfare theorems and failures of these theorems as with externalities but with resolutions, contract theory and mechanism design, policy analysis, the content of theory for data, and the design of media of exchange as with Bitcoin and markets made possible by distributed ledgers. (from ocw.mit.edu)
| Lecture 05 - Uncertainty and Linear Problems |
Instructor: Prof. Robert M. Townsend. Farmers in medieval villages faced the risk of starvation and took great pains to diversify that risk as best they could, farming long narrow strips of land. There were also gains from pooling risk across distant villages. Surprisingly, such problems can be formalized with lotteries. Linear program problems capture this and a wide variety of applications.
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