UNIVERSITY OF ALBERTA DEPARTMENT OF ECONOMICS
ECONOMICS 505: MICROECONOMIC THEORY II WINTER 2016
Instructor: Tilman Klumpp Classes: M/W 12:30–1:50 pm
Office: Tory 9-20 Room: Tory B 109
E-mail: [email protected] Office hours: By appointment Phone: (780) 492-5437
Text: (MWG) Andreu Mas-Colell, Michael D. Whinston, and Jerry R. Green:
Microeconomic Theory. Oxford University Press, 1995.
Prerequisites: Economics 503.
Description: This course completes the Ph.D. Microeconomics sequence. Topics include: Choice under uncertainty, non-cooperative game theory, and information economics. A detailed outline is on page 2.
Grading: Numerical grades will be calculated as follows:
Homework assignments (5 or so) 1/6 weight
Midterm exam (Wednesday, February 24, 2016) 1/3 weight Final exam (Thursday, April 14, 2016) 1/2 weight Final letter grades will be assigned in accordance with university and departmental policies.
Policies: Class attendance is mandatory. Students are encouraged to collaborate on homework assignments, but only with classmates currently enrolled in this course.
You must not utilize answers from previous years; if I determine that you did you will get an F. All exams are closed book/closed notes/no collaboration. See page 3 for detailed UofA policies.
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OUTLINE OF TOPICS
1. Choice under uncertainty
(a) Expected utility (MWG Ch. 6.A–6.B)
(b) Money lotteries and risk aversion (MWG Ch. 6.C–6.D) 2. Non-cooperative game theory
(a) Representation of games (MWG Ch. 7.A–7.D) (b) Mixed strategies (MWG Ch. 7.E)
(c) Dominant strategies (MWG Ch. 8.A–8.B) (d) Nash equilibrium (MWG Ch. 8.D)
(e) Trembling hand perfection (MWG Ch. 8.F) (f) Bayesian Nash equilibrium (MWG Ch. 8.E)
(g) Backward induction and subgame perfection (MWG Ch. 9.A–9.B) (h) Beliefs and sequential rationality (MWG Ch. 9.C)
(i) *Forward induction (MWG Ch. 9.D) 3. Information economics
(a) Adverse selection (MWG Ch. 13.A–13.B) (b) Signaling (MWG Ch. 13.C)
(c) Screening (MWG Ch. 13.D)
* indicates advanced topic which we may skip in the interest of time.
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UofA fine print:
1. Attendance: In cases of potentially excusable absences due to illness or domestic affliction, notify your in- structor by e-mail within two days. Regarding absences that may be excusable and procedures for addressing course components missed as a result, consult§23.3(1) and§23.5.6 of the University Calendar. Be aware that unexcused absences will result in partial or total loss of the grade for any exams, tests, or assignments that are not handed in or completed as a result.
2. Deferred final exam. A student who has missed a final exam because of incapacitating illness, severe domestic affliction or other compelling reason (including religious conviction) may apply for a deferred exam. A deferred final exam will not be approved if a student, excluding the final exam, has completed less than half of the assigned work (Calendar§23.5.6 (2)).
PLEASE NOTE: The deferred final exam, should one be required, is on Monday, May 2, 2016, at 10:00 a.m. in the Economics Department office (report to 8-14 Tory).
3. Recording of lectures. Audio or video recording of lectures, labs, seminars, or any other teaching environment by students is allowed only with the prior written consent of the instructor or as a port of an approved accomodation pan. Recorded material is to be used solely for personal study, and is not to be used or distributed for any other purpose without prior written consent from the instructor.
4. Academic integrity. 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 academic 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 (www.governance.ualberta.ca/en/CodesofConductand ResidenceCommunityStandards/CodeofStudentBehaviour.aspx) and avoid any behaviour that could poten- tially result in suspicions of cheaing, plagiarism, misrepresentation of facts and/or participation in an ofence.
Academic dishonesty is a serious offence and can result in suspension or expulsion from the University. All students should consult the “Truth-In-Education” handbook or website (www.uofawek.ualberta.ca/TIE) re- garding the definitions of plagiarism and its consequences when detected. [...] An instructor or coordinator who is convinced that a student has handed in work that he or she could not possibly reproduce without outside assistance is obliged, out of consideration of fairness to other students, to report the case to the Associate Dean of the Faculty. Before unpleasantness occurs consult www.uofawek.ualberta.ca/TIE; also discuss this matter with any tutor(s) and with your instructor.
PLEASE NOTE: Students are encouraged to collaborate on homework assignments, but only with classmates currently enrolled in this course, and each student must submit a separate assignment. You must not utilize answers from previous years; if I determine that you did you will get an F. All exams are closed book/closed notes/no collaboration.
5. 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. The Department urges anyone who feels that this policy is being violated to
• discuss the matter with the person whose behavious is causing concern; or
• if that discussion is unsatisfactory, or there is concern that direct discussion is inappropriate or threatening, discuss it with the Chair of the Department.
For additional advice or assistance regarding this policy you may contact the student ombudservice (www.
ombudservice.ualberta.ca). Information about the University of Alberta Discrimination and Harassment Policy and Procedures can be found in the GFC Policy Manual,§44 (gfcpolicymanual.ualberta.ca).
