Key topics covered in Advanced Microeconomic Theory (Paper I):

Advanced Microeconomic Theory (Paper I) is an essential subject for students pursuing economics or related fields. This paper delves into intricate concepts and theories that build upon the foundation of microeconomics. The key topics covered in this paper are:

1. Consumer Theory:
- Analysis of consumer behavior and decision-making process
- Utility theory and its applications
- Indifference curve analysis
- Budget constraints and consumer equilibrium
- Demand theory and elasticity of demand

2. Producer Theory:
- Theory of the firm and production decisions
- Cost theory and cost minimization
- Production and cost functions
- Profit maximization and supply decisions
- Market structures and equilibrium

3. General Equilibrium and Welfare Economics:
- General equilibrium analysis and its implications
- Efficiency and Pareto optimality
- Social welfare functions and criteria for welfare analysis
- Externalities and public goods
- Market failures and government intervention

4. Game Theory:
- Introduction to game theory and strategic interactions
- Types of games and their solution concepts (e.g., Nash equilibrium)
- Applications of game theory in economics (e.g., oligopoly, bargaining)

5. Information Economics:
- Asymmetric information and market outcomes
- Moral hazard and adverse selection
- Signaling and screening models
- Principal-agent relationships and incentive design

6. Decision Theory:
- Uncertainty and decision-making under risk
- Expected utility theory and its limitations
- Behavioral economics and deviations from rationality
- Prospect theory and other alternative models

7. Auction Theory:
- Types of auctions and their properties
- Bidding strategies and revenue maximization
- Auction design and efficiency considerations
- Applications of auction theory in practice

These key topics provide a comprehensive understanding of advanced microeconomic theory and its applications. Mastery of these concepts equips students with the analytical tools needed to analyze and solve complex economic problems.