Course title

Microeconomic Analysis II

Responsible person
DAVID Michael WOLF
to enter grades
Numbering Code

Day・Period, etc. Fri3(対面)

開講区分

単位数

1st semester

2.0

Timetable Slot
Code

1J368

Lesson topic
Building on foundational topics covered in Microeconomic Analysis I, this course shifts focus from the consumer tothe producer during the first eight weeks of class. Students will come to better understand the constraints that
producers face and how they try to make themselves as well off as possible in a world of scarcity. After themidterm, students will learn fundamental concepts within the field of game theory, which is a powerful tool used toanalyze strategic interactions between cooperative and non-cooperative players. Finally, concepts from producer andgame theory will be brought together to better understand firm behavior in markets with imperfect competition.

Lesson target
Upon completion of this course, students will be able to: (1) use economic reasoning to explain the strategic
choices of individuals or firms, (2) explain the functioning of factor markets and the determination of input
prices, (3) explain the conditions needed for profit maximization, both in the short and long-run, for a firm
operating in a perfectly competitive market, (4) solve strategic form games by first identifying dominant
strategies, Nash equilibria, and mixed strategies, and (5) analyze firm behavior in markets with imperfectcompetition.
Syllabus and plan
Weeks 1 – Introduction, Class Expectations and Review
Weeks 2 and 3 – Producer Theory I: Production and Cost Curves
Weeks 4 and 5 – Producer Theory II: Profit Max and Short-Run Supply
Weeks 6 and 7 – Production Theory III: Long-Run Supply and the Partial Equilibrium Model
Week 8 Midterm Achievement Check
Weeks 9 and 10 – Game Theory I: Pure and Mixed Strategies
Weeks 11 and 12 – Game Theory II: Dynamic Games and Signaling
Weeks 13 and 14 – Market Power: Monopoly and Imperfect Competition
Weeks 15 and 16 Wrap Up, Summary, and Final Exam**Please note, classes scheduled between April 28th and May 14th will be conducted online and on an on-demandbasis. Pre-recorded lecture videos will be provided to students for topics covered during this period.
The schedule is subject to change as the semester progresses. This class will be conducted in principle face-toface. I will notify you via Google Classroom and mention in class beforehand if a class will be conducted online asopposed to in person.
In addition, due to university regulations the final exam will be conducted in person and will be scheduled during
the 15th or 16th week of the course. During the non-exam week (i.e., either the 15th or 16th week), a final classwill be held online or on-demand.

Evaluation method
Quizzes (20%)
Midterm Exam (30%)
Final exam (50%)

Evaluation baseline
Students will be assessed on their ability to solve profit-maximizing decisions within perfectly and imperfectlycompetitive markets. Upon completion of the course, students must also be able to solve strategic form games, which
requires an understanding of dominant and mixed strategies and Nash equilibrium.
The final and midterm exams will be closed book. No notes are allowed during either exam. The final exam will cover
all topics covered in Week 1 and onwards.
The grading scale used for this course is:
90 - 100: S
80 - 89: A
70 - 79: B
60 - 69: C<60: FailNotice (include info. on related class)
Exchange students (special auditing students) are allowed to register for this course. All students are expected to
be proficient in calculus (derivatives and integrals) and intermediate-level statistics prior to taking thiscourse.
In addition, students must have completed Microeconomic Analysis I (or a similar course) if they would like toattend this class. Students, in other words, should know the following topics – utility maximization, duality, theSlutsky Equation, utility maximization under uncertainty, and general equilibrium models – before taking thiscourse. Many topics covered in this course will build upon these prior concepts.
Review and preparation
Students are expected to read the corresponding articles/textbook chapters before coming to class. I will also post
additional review material on the class webpage. Please make sure to check the course website regularly.
I would suggest reviewing calculus, linear algebra, statistics and your notes from Microeconomic Analysis I before
the first day of class.

Office hour・Contact information
Office hours: by appointment only
Office location: Frontier Hall for Social Sciences Room 812
Email: wolf@econ.kobe-u.ac.jp

Message for student
Please work through the examples discussed in class a second time at home to better your understanding of thecourse material. Feel free to ask questions if you are ever confused.
You will find this course cumbersome if you do not read the corresponding textbooks chapters/articles at home.

Improvemenets in Teaching

Text

Microeconomic Theory: Basic Principles and Extensions 12th Edition / Walter Nicholson and Christopher Snyder :Cengage Learning ,2017 ,ISBN:9781305505797

Reference Material

Mathematics for Economists / Carl P. Simon, and Lawrence Blume : W. W. Norton & Company ,1992 ,ISBN:9780393957334
Game Theory / D. Fudenberg and J. Tirole : MIT Press ,1991 ,ISBN:9780262061414
Intermediate Microeconomics: A Modern Approach 8th Edition / Hal Varian : W W Norton & Co Inc ,2009 ,ISBN:393934241
Classroom Language
EnglishEnglishKeywords
Microeconomics, profit maximization, game theory, market power, exchange students (special auditing students)