4163: Microeconomic Analysis

University of Minnesota

Department of Economics

ECON 4163

Syllabus

Spring 2025 (1st half)

Econ 4163 and Econ 4164 are designed as a 2-mini course (each 2 credits that make a total of 4 credits). They are follow-up minis.

Instructors: Prof. Aldo Rustichini for ECON 4163

Discussion sessions will be led by a TA (TBA).

Course Description:

Basic notions of game theory, static and over time, with applications. Content: Basic decision theory. Normal form games. Nash Equilibria. Correlated Equilibria. Extensive form games. Wars of attrition. Games of timing. Auction theory. Applications in industrial organization, international relations.

Prerequisites:

ECON 3101, 3102, MATH 1271, MATH 1272 [or equiv courses]; and two 4xxx level ECON electives. Dept. Consent.

Delivery mode:

In Person

Office hours: Online (TBA)

Meeting time:

Lecture – Tuesday/Thursday, 2:30pm – 3:45pm

Discussion – Wednesday, 4:30pm – 5:45pm

Course grading:

The final grade will be based on 20 percent homework, 30 percent midterm exam, and 50 percent final exam.

Course assignments:

There will be 2 homework assignments, one midterm exam, and a final exam.

Textbooks:

Osborne, An Introduction to Game Theory; Steven Tadelis, Game Theory: An Introduction

List of topics covered in ECON 4163:

1. Solution Concepts for Static Games (3 weeks)

     a. Complete information: rationalizability, Nash equilibrium

     b. Incomplete information: Bayesian Nash equilibrium

2. Solution Concepts for Extensive-form Games (2 weeks)

     a. Backwards induction, subgame perfection, iterated conditional dominance.

     b. Bargaining with complete information 

3. Equilibrium Concepts for Games with Imperfect Information (1 week)

4. Signaling and Forward Induction (1 week)

     a. Stable equilibrium, intuitive criterion, iterated weak dominance, epistemic foundations.

STUDENT LEARNING OUTCOMES

·   Students will learn the basic notions of game theory and see the applications in several areas of economics, political science, and sports.

·   Students can relate game theory to real-world examples.

·   Students acquire one basic tool to use in different subfields of economics.

DEPARTMENT OF ECONOMICS

PROCEDURES AND POLICIES  2023-24

CLASS ASSIGNMENTS:

Written answers to homework assignments must be typed; Graphs and numerical work need not be typed but should be legible.

COURSE PREREQUISITES:

Students are expected to have successfully completed all prerequisites prior to taking an Economics course.

STUDENTS WITH DISABILITIES:

Reasonable accommodation will be provided for all students with documented disabilities (by the DRC). Contact the instructor at the beginning of the semester to work out details. This information will be kept confidential.

STUDENT MENTAL HEALTH AND STUDENT COUNSELING SERVICES:

As a student you may experience a range of issues that can cause barriers to learn, such as strained relationships, increased anxiety, alcohol/drug problems, difficulty concentrating and/or lack of motivation. These mental health concerns or stressful events may lead to diminished academic performance or reduce a student's ability to participate in daily activities. University of Minnesota services are available to assist you with addressing these and other concerns. Information about confidential mental health services is available at: https://boynton.umn.edu/clinics/mental-health. Student Counseling Services website: https://counseling.umn.edu/

SEXUAL MISCONDUCT

Sexual misconduct (sexual harassment, sexual assault, stalking, and relationship violence) includes unwelcome sexual advances, requests for sexual favors, and/or other verbal or physical conduct of a sexual nature. Such behavior is prohibited in the University setting.

Per the U of M policy on sexual harassment, I am required to share information that I learn about possible sexual misconduct with the campus Title IX office. Within the requirements of my job, I will be as responsive as possible to your requests for confidentiality and support. You can also, or alternately, choose to talk with a confidential resource that will not share information that they learn about sexual misconduct. Confidential resources include The Aurora Center, Boynton Mental Health, and Student Counseling Services.

DROPPING A CLASS:

Termination of attendance alone is not sufficient to drop a class. You must notify the Registrar’s office. Please contact your academic (college) adviser for details on this process and pay attention to the University deadlines for add/drop.

INCOMPLETE GRADE:

Low class standing is not a valid reason for an Incomplete grade. An I is given only in exceptional circumstances like family emergencies or hospitalization; arrangements must be worked out between the student and instructor before the final exam. We require written proof of emergencies. Details about I grade and how to make it up are to be decided by the instructor and student; you need to fill out the form.

MAKE-UP EXAMS:

Make-up exams are possible for the final exam only if the student has another exam scheduled at the same time or has three exams within a 16-hour period. This should be pre-arranged with the instructor at least three weeks before the final exam. Make up final exams may also be possible for documented medical emergencies.

SCHOLASTIC DISHONESTY:

"The College of Liberal Arts defines scholastic dishonesty broadly as any act by a student that misrepresents the student's own academic work or that compromises the academic work of another. Examples include cheating on assignments or exams, plagiarizing (misrepresenting as one's own anything done by another), unauthorized collaboration on assignments or exams, or sabotaging another student's work".

The University Student Conduct Code defines scholastic dishonesty as “Submission of false records of academic achievement; cheating on assignments or examinations; plagiarizing; altering, forging, or misusing a university academic record; taking, acquiring, or using text materials without faculty permission; acting alone or in cooperation with another to falsify records or to obtain dishonestly grades, honors, awards, or professional endorsement.”

Penalties for scholastic dishonesty of any kind in any course will entail an "F" for the assignment/exam or the course.

Website for information on Student Academic Misconduct -- https://communitystandards.umn.edu/avoid-violations/avoiding-scholastic-dishonesty

STUDENT CONDUCT AND CLASSROOM BEHAVIOR:

Students are expected to contribute to a calm, productive, and learning environment. Check the Student Conduct Code to find out what is expected of you. 

https://regents.umn.edu/sites/regents.umn.edu/files/2019-09/policy_student_conduct_code.pdf 

STUDY ABROAD IN ECONOMICS:

The Department encourages you to undertake Study Abroad. There are many courses in foreign countries that can satisfy some economics major, minor, or Liberal Education requirements. For more information, please contact our Undergraduate Advisers, Ms. Annie Bigley and Ms. Tiffany Kroeze Murphy, or the University’s Learning Abroad Center at http://www.umabroad.umn.edu/.

UNDERGRADUATE ADVISERS:

Contact the Undergraduate Advisers if you wish to sign up for an Economics major or minor or to get information about institutions of higher study. Your APAS form will list your progress toward an Economics degree. 

Adviser: Ms. Tiffany Kroeze Murphy and Ms. Annie Bigley (econadv@umn.edu); Sign up for appointments at  econ.appointments.umn.edu          

ECONOMICS UNDERGRADUATE PROGRAM INFORMATION:

Available on the Internet at:  https://cla.umn.edu/economics/undergraduate.  Registration policies are listed in the University Course Schedules and College Bulletins.

COMPLAINTS OR CONCERNS ABOUT COURSES:

All course grades are subject to department review.

Please contact your instructor or TA if you have any complaints/concerns about the course. If your concerns are not resolved after talking with your instructor, you can contact Dr. Ayca Ozdogan, Director of Undergraduate Studies.  Her e-mail is: ozdog002@umn.edu

STATEMENT ON FERPA (Family Education Rights and Privacy Act) :

In this class, our use of technology will sometimes make students' names and U of M Internet IDs visible within the course website, but only to other students in the same class. Since we are using a secure, password-protected course website, this will not increase the risk of identity theft or spamming for anyone in the class. If you have concerns about the visibility of your Internet ID, please contact me for further information.

DEPARTMENT OF ECONOMICS POLICY ON AI:

Artificial intelligence (AI) language models, such as ChatGPT, and online assignment help tools, such as Chegg®, are examples of online learning support platforms: they cannot be used for course assignments or exams. The following actions are prohibited in economics course:

• Submitting all or any part of an assignment/paper/exam statement from an online learning support platform.

• Incorporating any part of an AI-generated response in an assignment.

• Using AI to brainstorm, formulate arguments, or template ideas for assignments.

• Using AI to summarize or contextualize source materials.

• Submitting your own work for this class to an online learning support platform for iteration or improvement.

If you are in doubt as to whether you are using an online learning support platform appropriately in this course, please discuss your situation with the instructor.

Any assignment content composed by any resource other than you, regardless of whether that resource is human or digital, must be attributed to the source through proper citation. (Examples of citing content composed by digital tools are presented in: libguides.umn.edu/ChatGPT or provide an alternative reference appropriate for your class].)

Unattributed use of online learning support platforms and unauthorized sharing of instructional property are forms of scholastic dishonesty and will be treated as such. Students may receive a score of zero if unauthorized AI tools are used in any assignment or exam that is graded.