What This Document Is
These are lecture notes from an introductory economics course (ECON 2) at the University of California, Berkeley. Specifically, they cover advanced topics related to market equilibrium and welfare economics, building upon foundational concepts. The notes delve into the theoretical underpinnings of price determination and the conditions under which competitive market outcomes are achieved. This material represents the second half of the course, focusing on a deeper exploration of core economic principles.
Why This Document Matters
This resource is ideal for students enrolled in intermediate or advanced microeconomics courses seeking a detailed understanding of equilibrium concepts. It’s particularly valuable when studying game theory, welfare economics, and the assumptions behind standard economic models. These notes can be used to supplement textbook readings, clarify complex lecture material, and prepare for more rigorous coursework. Students who want to strengthen their grasp of the theoretical foundations of market behavior will find this a helpful study aid.
Topics Covered
* Core economic theory and its relation to Walrasian equilibrium
* Conditions for market stability and the implications of deviations from equilibrium
* The concept of “core convergence” and its relevance to price-taking assumptions
* Welfare theorems and their connection to core allocations
* Analysis of market power and its impact on economic outcomes
* Historical context of core economic concepts and their development
What This Document Provides
* A detailed exploration of the core, a key concept in understanding market stability.
* Discussion of the relationship between core allocations and Walrasian equilibria.
* Insights into the assumptions underlying economic models and their limitations.
* An examination of the conditions under which price-taking behavior is justified.
* A historical perspective on the development of core economic theory.
