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Applied Microeconomics aims to model economic activities as the interaction of individual economic agents pursuing their private interests. Topics discussed include game theory and its applications, such as firms’ strategies in the oligopoly market. Applied Microeconomics itself will give you the basic idea of how markets work and, also, the conditions under which they fail to produce an optimal outcome.
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1. Overview of the course: Market, demand and supply
2. Game Theory I: Basic Concepts: Nash equilibrium (Theory)
3. Game Theory II: Basic Concepts: Nash equilibrium (illustrations)
4. Game Theory III: Mixed Strategy Equilibrium
5. Game Theory IV: Extensive Games with Perfect information (Theory)
6. Game Theory V: Extensive Games with Perfect information (illustrations)
7. Midterm Examination
8. Midterm Examination Explanation and comments
9.Game Theory and its applications I: Firms behavior and structure of the market
10. Game Theory and its Applications II: Monopoly
11. Game Theory and its Applications III: Oligopoly I
12. Game Theory and its Applications IV: Oligopoly II
13. Game Theory and its Applications IV: Reviews
14. Market Failure I: Externalities
15. Market Failure II: Public Goods
16. Final Examination
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This course aims to introduce you to MA graduate-level microeconomic theory and game theory. To gain a solid training in microeconomics, you are given the opportunity in this course to apply the following five basic analytical frameworks to your research: (1) specification of economic environments, (2) imposition of behavioral assumptions, (3) adoption of economic institutional arrangements, (4) determination of equilibria, and (5) evaluation of outcomes resulting from an undertaken institution.
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Assignments (30%), a midterm exam (20%), a final exam (40%), and course attendance (10%).
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【成績評価の基準表】
| 秀(S) | 優(A) | 良(B) | 可(C) | 不可(F) |
| 履修目標を越えたレベルを達成している | 履修目標を達成している | 履修目標と到達目標の間にあるレベルを達成している | 到達目標を達成している | 到達目標を達成できていない |
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履修目標：授業で扱う内容（授業のねらい）を示す目標
到達目標：授業において最低限学生が身につける内容を示す目標
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Weekly lectures, handouts and problem sets (two or three times in the semester). Although I will mostly follow Varian's textbook with PPT slides, the consecutive lectures will sometimes deviate from the text. Attending the lectures and reading the corresponding chapters from the textbook will help you gain understanding of the concepts. Working on the homework assignments will help you make the crucial step from understanding the concepts towards being able to solve problems. Learning to solve problems is the key to doing well in this course.
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I would like to use some part of referenced textbooks to teach several topics of game theory and applied microeconomics.
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If you are not good at mathematics, Sydsaeter and Hammond's textbook will help you understand the mathematical models in economics.
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Knowledge of both basic calculus and linear algebra is a prerequisite for taking this course. I strongly recommend registering for the Spring Semester course, "Mathematics for Economists."
Also, knowledge of the undergraduate level course in Microeconomics is desirable. You can register for this course without taking “Microeconomics” in the Spring semester. However I also strongly recommend registering for “Microeconomics” in the Spring Semester as “Applied Microeconomics” is a consecutive course to “Microeconomics.”
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Mathematical modeling, Microeconomics
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In this semester, the course will cover consumer theory and General Equilibrium. I would strongly recommend registering for Microeconomics in the Spring Semester because Microeconomics is the basis of this semester’s course. In addition, you should study the textbook and exercises by yourself. If you are concerned about your mathematical abilities which are a minimum requirement of this course, please consult with me.
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