Department of Economics University of Alberta Fall 2019
Econ 481: Advanced Microeconomic Theory
Syllabus
Instructor: Dodge Cahan Office: Tory 9-25
Office Hours: Tuesday and Thursday, 9:30 am - 10:30 am Email: [email protected]
Class Times: Tue-Thu 12:30 pm - 1:50 pm (Section A3) Class Location: TB104 (Section A3)
Course objectives
This course seeks to cover standard microeconomic concepts at an advanced level. It will give the student the ability and tools to approach and analyze common decision problems from an economic standpoint. Topics include consumer theory, the theory of the firm, game theory, among others.
Prerequisites
The prerequisites for this course are Econ 384 and 386, or consent of the department. You must be familiar with mathematical techniques such as differential calculus, constrained and unconstrained optimization, comparative statics. You should understand how a simple mathematical proof works.
Required textbook
Microeconomics by Gravelle and Rees (3rd Edition, 2004). The electronic version is fine. I will also make available various supplemental materials on the course website. Some things covered will not be posted, so you need to come to class to get everything.
Evaluation
The weights on the evaluations are as follows:
Midterm: 28% (Section A3: October 17 in class) Assignment 1: 8%.
Assignment 2: 8%.
Assignment 3: 8%
Assignment 4: 8%.
Final: 40% (as scheduled by the university – refer to Bear Tracks).
1
There are no make up exams. If a student misses the midterm with a legitimate excuse as per university policy, the weight on the midterm will be reassigned to the final.
Late assignments will get zero unless extreme circumstances apply. Assignments will be available for a minimum of one week before the due date.
Sample exam questions will be given throughout the course. All evaluations may be cumulative.
Letter grades
Will be assigned based on both absolute and relative performance. There are no fixed cutoffs set prior to the course’s commencement.
Course outline
The following is a tentative outline of the topics that will be covered. This is subject to change.
• Math review
• Consumer theory – Preferences – Utility functions
– Utility maximization problem – Expenditure minimization problem
– Demand functions and the Slutsky equation – Welfare measures
• Producer theory
– Production functions – Cost minimization – Profit maximization – Competitive firm – Monopoly
• Game theory
– Simple static and dynamic games – Equilibrium concepts
– Oligopoly
• Asymmetric information
• Competitive equilibrium, Edgeworth box and the welfare theorems 2
Class policies
• Do not record or take pictures of the lectures.
• Class policies are as described in the syllabus - do not send emails asking for things that are outlined in the syllabus.
• Students are encouraged to collaborate on assignments. However, every student should write up the solutions in their own words. If two or more assignments are close to word for word copies of eachother then they are considered as one assignment and the score for the assignment will be divided by the number of offending submissions.
Withdrawal deadline
November 29, 2019 (unless otherwise specified by University Calendar).
Outside resources
• Accessibility Resources (formerly Student Accessibility Services): If you have a condition that may require some classroom or exam modifications, please contact Accessibility Re- sources to obtain a determination as to what accommodations should be made.
• Academic Success Centre: The Academic Success Centre offers a variety of learning re- sources, including a variety of workshops in learning effective study and exam strategies.
• Centre for Writers: The Centre for Writers offers free one-on-one writing coaching to all stu- dents. Students can request consultation for a writing project at any stage of development.
University policies and notices
• “Policy about course outlines can be found in the Evaluation Procedures and Grading System section of the University Calendar.”
• “The University of Alberta is committed to the highest standards of academic integrity and honesty. Students are expected to be familiar with these standards regarding aca- demic honesty and to uphold the policies of the University in this respect. Students are particularly urged to familiarize themselves with the provisions of the Code of Student Behaviour (online at www.governance.ualberta.ca) and avoid any behaviour which could potentially result in suspicions of cheating, plagiarism, misrepresentation of facts and/or participation in an offence. Academic dishonesty is a serious offence and can result in suspen- sion or expulsion from the University.” http://www.ualberta.ca/current-students/academic- resources/academic-integrity
• “Audio or video recording, digital or otherwise, of lectures, labs, seminars or any other teaching environment by students is allowed only with the prior written consent of the instructor or as part of an approved accommodation plan. Student or instructor content, digital or otherwise, created and/or used within the context of the course is to be used solely
3
for personal study, and is not to be used or distributed for any other purpose without prior written consent from the content author(s).”
• “The University of Alberta acknowledges that we are located on Treaty 6 territory, and respects the histories, languages, and cultures of the First Nations, Mtis, Inuit, and all First Peoples of Canada, whose presence continues to enrich our vibrant community.”
• “It is the policy of the University of Alberta that sexual violence committed by any member of the University community is prohibited and constitutes misconduct. Resources and more information can be found at https://www.ualberta.ca/campus-life/sexual-violence”
• “Learning and working environment: The Faculty of Arts is committed to ensuring that all students, faculty and staff are able to work and study in an environment that is safe and free from discrimination and harassment. It does not tolerate behaviour that undermines that environment.”
4