高级微观经济学 (黄有光) AdMicro-L1-MathTools.docVIP

ECC5650 Microeconomic Theory Topic 1: Set, Topology, Real Analysis and Optimization (with the complement of Associate Prof. Michael Li) Readings: JR - Chapters 1 2, supplemented by DL - Appendix C 1.1 Introduction In this lecture, we will quickly go through some basic mathematical concepts and tools that will be used throughout the rest of the course. As this is a review session, the attention will be mainly on refreshing on the language, style and rigor of mathematical reasoning. In economic analysis, especially microeconomic analysis, mathematics is always treated as a tool, never the end. On the other hand, by integrating economics with rigorous mathematics, we will be able to develop the theoretical expositions in a sound and logical manner, which is why economics is also known as economic science. Not many other traditionally known as social science fields manage to pass this critical stage. But it is important to remember that as an economist, we must go beyond the normal mathematical treatment and the underlying economics and their policy implications are far more important and interesting. The plan of this lecture goes like this. First, we will review the basic set theory. We then move on to a bit of topology. After reviewing basic elements of real analysis, we will cover some key results in optimization. 1.2 Basics of Set Theory 1.2.1 Basic Concepts set: a collection of elements sets operations: union, intersection real sets: (the notion of vectors) ( : for any; ( : there exists; ( : such that; ( : belongs to; is an element of 1.2.2 Convexity Relations Convex Set: A set S ( Rn is convex if Intuitively, a set is a convex set if and only if (iff) we can connect any two points in a straight line that lies entirely within the set. Convex set has no holes, no breaks, no awkward curvatures on the boundaries; they are considered as “nice sets”. The intersection of two convex sets remains convex. Relations For any two given sets, S and T, a binary rel