Questions tagged [mwg]

This tag is for questions relating to the book "Microeconomic Theory" by Andreu Mas-Colell, Michael Whinston, Jerry Green

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1answer
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Properties on conditional demand correspondence from the textbook of Mas-Colell et al

I have a question on the properties of conditional demand correspondence Let $z(w,q)$ be the conditional factor demand correspondence, i.e. the solution of the cost minimization problem \begin{align} \...
5
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0answers
56 views

Parsing problem 1.D.5 in MWG

I am a little confused about the statement of 1.D.5 in MWG, which I will reproduce here for convenience. I have "solved" the problem, I just don't understand something particular. $\textbf{(...
4
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1answer
52 views

Adverse Selection: Positive Selection of Worker Types (Mas-Collel)

I'm reviewing some question from Mas-Collel and I am stuck on a chapter 13 question related to adverse selection. Consider a model of positive selection in which there are workers of two possible ...
4
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0answers
142 views

Question about MWG 17.D.1

I tried to solve by myself the exercises of MWG(Mas Colell). However, I think the exercise has an error at 17.D.1. The 17.D.1 asks us that "verify that there are multiple equilibria". However, The ...
3
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0answers
246 views

Best companion for Mas-Colell Microeconomic Theory textbook

What are the best sources to accompany MasColell Microeconomic Theory textbook in 1st year of MA in economics? I mean any sources - textbooks, videos, websites, book companions, etc. And I mean easy ...
3
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0answers
80 views

Does quasilinear preference contain rationality, monotonicity or other assumptions?

I have a question when I'm doing exercise 3.C.5(b) of MWG. The exercise asks to prove that a continuous preference on $(-\infty,\infty)\times R^{L-1}_+$ is quasilinear with respect to the first ...
2
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2answers
493 views

Finding Cobb-Douglas Hicksian Demand using Duality

I'm trying to follow the in-text examples from Mas-Colell. I can confirm I have the correct first order-conditions and hence the Marshallian demand functions for Example 3.D.1: $u(x_1,x_2) = x_1^\...
2
votes
1answer
51 views

Is possible that, in a choice structure $(B,C)$, $C(b) = \emptyset$, for some $b \in B$

It is a very simple question but with some implications. I just start reading Mas-Colell and it's not clear for me if it is possible a choice structure, $(B,C(.))$, where $\exists b \in B, C(b)= \...
2
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1answer
77 views

Why does Figure 2.F.1(b) (MWG page 30) satisfy the WARP (Definition 2.F.1)?

I can see that Figure 2.F.1(a) satisfies the WARP (Definition 2.F.1) in MWG (page 30). However, as the choice $x(p',w')$ is only feasible under the price-income level $(p',w')$ and $x(p'',w'')$ is ...
2
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0answers
173 views

If a mixed strategy is strictly dominated, then there is a strictly dominated pure strategy in its support?

I am looking at the proof of NE survives the iterated removal of strictly dominated strategies (MWG, ex 8.D.2) and in the solution manual, authors say something like if a mixed strategy is strictly ...
1
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1answer
66 views

I need to prove how an increase in output p increases profit-max. Can someone help to understand why IFT implies that z is a unique maximizing point? [closed]

MWG 5C6 asks: "Suppose a concave prod function f(z) with inputs $(z_1,...,z_L-1)$ and also that $\partial f(z))/\partial z_l \geqslant 0$ for all l and $z\geqslant0$ and that $D^2f(z)$ is ...
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0answers
79 views

What are the mathematical prerequisites to understand Whinston and Green's "Microeconomic Thoery"?

I've completed my under graduation in economics where I used micro books like Nicholson and Snyder's Microeconomic Theory and Hal Varian's Intermediate Microeconomics. I am comfortable with topics ...
0
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1answer
62 views

A question from MWG 2F12

This question is from MWG if walrasian demand function is generated by a rational preference relation then it must satisfy weak axiom. I cannot prove this statement. How can I do?Thanks alot.
0
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1answer
77 views

Is it enough to prove that $x \not \succsim^* y$?

I'm trying to negate that: $\exists B \in \mathcal{B}$ such that $x,y \in B$ and $x \in C(B)$. Looks that the negation is equivalent to: $\forall B \in \mathcal{B}(x,y \in B \implies x \not \in C(B))$....