- Class Number 4497
- Term Code 3130
- Class Info
- Unit Value 6 units
- Mode of Delivery In Person
- Dr Damien Eldridge
- Class Dates
- Class Start Date 22/02/2021
- Class End Date 28/05/2021
- Census Date 31/03/2021
- Last Date to Enrol 01/03/2021
Microeconomics provides the principal modelling tools and frameworks that are used in all fields of economics. The corresponding techniques are built on models of decision-making by economic agents, in environments with and without uncertainty, and on the analysis of interacting economic agents, in various settings such as markets or strategic situations. This course introduces the main techniques of microeconomics, at a level that lies between that of typical undergraduate courses, and that of Masters or PhD level courses. The results are presented and analysed using both intuitive graphical and formal mathematical methods. An important aim of the course is to show that the intuition gained from simple graphical models, and the insight derived from formal theoretical analysis are complementary, and that only the interplay between economic intuition and abstract results can lead to a complete understanding of the respective models and the conclusions drawn from their analysis.
Upon successful completion, students will have the knowledge and skills to:
- Understand the main models of decision-making by economic agents, such as consumers or firms, in environments with and without uncertainty;
- Distinguish between market-based and strategic models of interacting economic agents, and use such models to analyse economic problems;
- Be able to analyse economic models using both intuitive graphical and formal theoretical methods.
The material taught in this course is directly relevant to research in most, if not all, areas of economics.
Additional Course Costs
Examination Material or equipment
Due to restrictions associated with the COVID-19 pandemic, there will be no "in person" examinations held by ANU in Semester One of 2020. As such, the exam for this course will take the form of a "take home" exam. Given this, there will be no restrictions imposed on the materials that may be used during the exam.
The recommended textbooks for this course are:
- Varian, HR (2014), Intermediate microeconomics with calculus, WW Norton and Company, USA; and
- Dutta, PK (1999), Strategies and games: theory and practice, The Massachusetts Institute of Technology Press, USA.
You are not required to purchase a copy of either of these textbooks if you do not wish to do so. However, I strongly recommend that you have access to them during the semester. The ANU library will be requested to look into the possibility of obtaining a digital version of these items, if the ANU library does not already have such a version and if such a version exists. I will request that all physical copies of these editions of these books that are available in the ANU library system be placed on short loan for the duration of this course.
Other books and a journal article that you might find useful during this course include the following.
- Bergstrom, TC, and HR Varian (2014), Workouts in intermediate microeconomics (ninth edition), WW Norton and Company, USA.
- Gibbons, R (1992), Game theory for applied economists, Princeton University Press USA. (Also published under the title A primer in game theory by Harvester-Wheatsheaf in Great Britain.)
- Gravelle, H, and R Rees (2004), Microeconomics (third edition), Financial Times / Prentice Hall (Pearson), The United Kingdom.
- Varian, HR (1992), Microeconomic analysis (third edition), WW Norton and Company, USA.
- Wagstaff, A (1986), "The demand for health: theory and applications", The Journal of Epidemiology and Community Health 40(1), March, pp. 1-11.
The ANU library will be requested to look into the possibility of obtaining a digital version of these items, if the ANU library does not already have such a version and if such a version exists. I will request that all physical copies of these editions of these books that are available in the ANU library system be placed on short loan for the duration of this course. (Note that, when multiple editions of one of these books exists, it probably does not matter which edition you consult.)
Books relevant to this class can be found in both the Chifley Library (which houses most of the ANU Library’s economics collection) and the Hancock Library (which houses some of the ANU Library’s economics collection and most of the ANU Library’s mathematics collection). I strongly encourage you to familiarise yourself with, and make use of the resources contained in, both of these branches of the ANU Library.
Students will be given feedback in the following forms in this course:
- Graded tutorial assignments;
- Mid-semester exam marks, and
- Verbal feedback upon request during consultation sessions.
ANU is committed to the demonstration of educational excellence and regularly seeks feedback from students. Students are encouraged to offer feedback directly to their Course Convener or through their College and Course representatives (if applicable). The feedback given in these surveys is anonymous and provides the Colleges, University Education Committee and Academic Board with opportunities to recognise excellent teaching, and opportunities for improvement. The Surveys and Evaluation website provides more information on student surveys at ANU and reports on the feedback provided on ANU courses.
The amount of work required for successful completion of this class may vary between students. As a rough guide, students should expect to devote at least 10 hours a week to this class. This should include all of the following.
- 3 hours a week: lectures.
- 1 hour a week: tutorials.
- At least 6 hours a week: reading, research, writing, lecture and tutorial preparation.
|Week/Session||Summary of Activities||Assessment|
|1||Administrative Arrangements. Introduction to Microeconomics. Consumer Theory 1: The Budget Constraint. Consumer Theory 2: Preferences. Consumer Theory 3: Utility.||Assessment: No assessment items in week 1. Readings: Varian (2014): Chapters 2, 3, and 4. Bergstrom and Varian (2014): Chapters 2, 3, and 4. Gravelle and Rees (2004): Chapters 2A, 2B, Appendix 1 (for Chapter 2), and Appendix 2 (for Chapter 2). Varian (1992): Chapter 7.|
|2||Consumer Theory 4: Utility Maximisation and Optimal Choice. Consumer Theory 5: Ordinary (Uncompensated) Demands. Consumer Theory 6: Expenditure Minimisation and Compensated Demands. Tutorial 1: Consumer Theory Parts 1 to 3.||Assessment: No assessment items in week 2. Readings: Varian (2014): Chapters 5 and 6. Bergstrom and Varian (2014): Chapters 5 and 6. Gravelle and Rees (2004): Chapters 2C, 3A, and 3B. Varian (1992): Chapters 7, 8, and 9.|
|3||Consumer Theory 7: The Slutsky Decomposition. Consumer Theory 8: Measuring Changes in Consumer Welfare. Tutorial 2: Consumer Theory Parts 4 to 6.||Assessment: Tutorial Assignment 1 Due. Readings: Varian (2014): Chapters 7, 8, and 14. Bergstrom and Varian (2014): Chapters 7, 8, and 14. Gravelle and Rees (2004): Chapters 3B, 3C, and 4A. Varian (1992): Chapters 7, 8, and 9.|
|4||Producer Theory 1: Production Technologies. Producer Theory 2: Cost Minimisation and the Cost Function. Producer Theory 3: Cost Curves. Tutorial 3: Consumer Theory Parts 7 and 8.||Assessment: No assessment items in week 4. Readings: Varian (2014): Chapters 19, 21, and 22. Bergstrom and Varian (2014): Chapters 19, 21, and 22. Gravelle and Rees (2004): Chapters 5 and 6. Varian (1992): Chapters 1, 4, and 5.|
|5||Producer Theory 4: Profit Maximisation and the Profit Function. Producer Theory 5: Output Supplies, Output-Conditional Input Demands, and Unconditional Input Demands. Competitive Equilibrium 1: Market Demand, Market Supply, and Partial Equilibrium. Tutorial 4: Producer Theory Parts 1 to 3.||Assessment: Tutorial Assignment 2 Due. Readings: Varian (2014): Chapters 15, 20, 23, and 24. Bergstrom and Varian (2014): Chapters 15, 20, 23, and 24. Gravelle and Rees (2004): Chapters 7, 8, and 10A. Varian (1992): Chapters 2, 3, 6, and 13.|
|6||Mid-Semester Exam. (Replacing the Three Hours of Lectures.) Tutorial 5: Producer Theory Parts 4 and 5.||Assessment: Mid-Semester Exam.|
|7||Competitive Equilibrium 2: Commodity Endowments, Net Demands, and Net Supplies. Competitive Equilibrium 3: General Equilibrium in a Pure Exchange Economy. Tutorial 6: Review of the Mid-Semester Exam.||Assessment: Tutorial Assignment 3 Due. Readings: Varian (2014): Chapters 9 and 32. Bergstrom and Varian (2014): Chapters 9 and 32. Gravelle and Rees (2004): Chapters 12 and 13. Varian (1992): Chapter 17.|
|8||Consumer Theory Extension 1: Choice Under Uncertainty. Consumer Theory Extension 2: Choice Over Time. Consumer Theory Extension 3: Household Production. Tutorial 7: Competitive Equilibrium Parts 1 to 3.||Assessment: No assessment items in week 8. Readings: Dutta (1999): Chapters 1, 2, and 27. Varian (2014): Chapters 10 and 12. Bergstrom and Varian (2014): Chapters 10 and 12. Gravelle and Rees (2004): Chapters 4C, 11B, and 17. Varian (1992): Chapters 17 and 19. Wagstaff (1986).|
|9||Game Theory 1: Modelling Strategic Interaction. Game Theory 2: An Introduction to Static Games of Complete Information. Game Theory 3: Dominant Strategies, Dominated Strategies, and Dominance Solvability in Static Games of Complete Information. Tutorial 8: Consumer Theory Extension Parts 1 to 3.||Assessment: Tutorial Assignment 4 Due. Readings: Dutta (1999): Chapters 1, 2, 3, 4, 5, 6, 7, 8 and 28. Varian (2014): Chapters 29, and 30. Bergstrom and Varian (2014): Chapters 29 and 30. Gibbons (1992): Chapter 1. Varian (1992): Chapter 15.|
|10||Game Theory 4: Best Responses, Rationalisability, and Nash Equilibria in Static Games of Complete Information. Game Theory 5: Applications of Static Games of Complete Information. Game Theory 6: An Introduction to Dynamic Games of Complete Information. Game Theory 7: Distinguishing between complete (or incomplete) information and perfect (or imperfect) information. Tutorial 9: Game Theory Parts 1 to 3.||Assessment: No assessment items in week 10. Readings: Dutta (1999): Chapters 11, 13, 14, and 15. Gibbons (1992): Chapters 1 and 2.|
|11||Game Theory 8: The Relationship Between the Extensive Form and Normal Form Representations of Dynamic Games of Complete Information. Game Theory 9: Backwards Induction, Sequential Rationality of Beliefs, Sub-Games, and Subgame Perfection in Dynamic Games of Complete Information. Tutorial 10: Game Theory Parts 4 to 7.||Assessment: Tutorial Assignment 5 Due. Readings: Dutta (1999): Chapters 12, 16, 17, 18, 20, and 24. Gibbons (1992): Chapter 2.|
|12||Game Theory 10: Repeated Games Involving Complete Information. Game Theory 11: Applications of Dynamic Games of Complete Information. Tutorial 11: Game Theory Parts 8 to 11.||Assessment: No assessment items in week 12. Readings: Dutta (1999): Chapters 19, 20, 21, 22, 23, and 24. Gibbons (1992): Chapter 2.|
|13||Final Exam Period.||Assessment: Final Exam.|
Tutorials this semester will be delivered both remotely (via Zoom) and on-campus. They will be held in each teaching week from Week 2 to Week 12 inclusive. (There is no tutorial in Week 1.) You must enrol in a tutorial using the Wattle site for this course, and attend the tutorial in which you are enrolled. A selection of tutorials will be open for enrolment prior to the beginning of the semester - the remaining tutorials will be open in week 1 of Semester. Tutorial enrolment will take place via the Wattle site for this course. When tutorials are available for enrolment, please undertake the following steps.
1. Log on to Wattle, and go to the course site.
2. Click on the link “Tutorial enrolment”.
3. On the right of the screen, click on the tab “Become Member of…..” for the tutorial class you wish to enter.
4. Confirm your choice.
If you need to change your enrolment, you will be able to do so by clicking on the tab “Leave group….” and then re-enrol in another group.?You will not be able to enrol in groups that have reached their maximum number.?Please note that enrolment in ISIS must be finalised for you to have access to Wattle.
|Assessment task||Value||Due Date||Return of assessment||Learning Outcomes|
|Fortnightly Tutorial Assignments.||20 %||09/03/2021||15/03/2021||1, 2, 3.|
|Mid-Semester Exam.||20 %||29/03/2021||23/04/2021||1, 2, 3.|
|Final Exam.||60 %||03/06/2021||01/07/2021||1, 2, 3.|
* If the Due Date and Return of Assessment date are blank, see the Assessment Tab for specific Assessment Task details
ANU has educational policies, procedures and guidelines, which are designed to ensure that staff and students are aware of the University’s academic standards, and implement them. Students are expected to have read the Academic Misconduct Rule before the commencement of their course. Other key policies and guidelines include:
The ANU is using Turnitin to enhance student citation and referencing techniques, and to assess assignment submissions as a component of the University's approach to managing Academic Integrity. For additional information regarding Turnitin please visit the Academic Integrity . In rare cases where online submission using Turnitin software is not technically possible; or where not using Turnitin software has been justified by the Course Convener and approved by the Associate Dean (Education) on the basis of the teaching model being employed; students shall submit assessment online via ‘Wattle’ outside of Turnitin, or failing that in hard copy, or through a combination of submission methods as approved by the Associate Dean (Education). The submission method is detailed below.
Moderation of Assessment
Marks that are allocated during Semester are to be considered provisional until formalised by the College examiners meeting at the end of each Semester. If appropriate, some moderation of marks might be applied prior to final results being released.
Please see the information for assessment item 2 and assessment item 3 above.
Assessment Task 1
Learning Outcomes: 1, 2, 3.
Fortnightly Tutorial Assignments.
- You are requested to submit answers to all of the "tutorial questions" (but not any "additional practice questions") that are assigned for teaching week 3 (tutorial 2), teaching week 5 (tutorial 4), teaching week 7 (tutorial 6), teaching week 9 (tutorial 8), and teaching week 11 (tutorial 10).
- Each of these assignments should be submitted online through the "Turnitin" link on the Wattle site for this class. A scanned copy of your handwritten assignment is fine. You are not required to type up your answers. However, in order for your assignment to be marked, it must be legible to the grader. If it is not legible, then a mark of zero will be awarded.
- Each assignment should be submitted by 8:00 am on the Monday at the beginning of the week in which the relevant tutorials are held (that, in teaching weeks 3, 5, 7, 9, and 11), unless that Monday is a public holiday. If the Monday is a public holiday, then the assignment should be submitted by 8:00 am on the first regular business day thereafter.
- If you have trouble submitting your assignment through the turnitin link, then please email a copy of that assignment to the course email address (ECON8025@anu.edu.au). Any such email must be received no later than 08:00:00 am on the day that the assignment is due in order for your assignment to be marked.
- You will typically receive the questions for each assignment at least half a week before it is due.
- No late submissions will be accepted. Any assignments that are not submitted by the due date and time will receive a mark of zero.
- In each of these assignments, one question will be chosen for assessment and your mark for that assignment will be based on your response to that question. The identity of the selected question will only be revealed upon release of the marked assignments.
- Your four highest scoring tutorial assignments will be used to calculate your total mark for this assessment component. Each of those four tutorial assignments will potentially be worth 5 % of your overall mark for this course. This means that this assessment component is potentially worth 20 % of your mark for this course.
- Note that this assessment component is redeemable against the final exam. This means that it will only count if you receive a higher percentage mark for this assessment component than you do for the final exam. This will be calculated automatically. No action is required on your part.
- We will endeavor to release comments and marks for these assignments via "Turnitin" by 5:00 pm on Mondays in Teaching Weeks 4, 6, 8, 10, and 12 (that is, in the week after they are submitted).
- All learning outcomes are relevant for this assessment task.
Assessment Task 2
Learning Outcomes: 1, 2, 3.
- Given the restrictions associated with the COVID-19 pandemic, the mid-semester exam will take the form of a "take home" exam that is implemented through the Wattle site for the course. This would involve a three hour exam period, with a "suggested" or "indicative" allocation of that time involving fifteen minutes of reading time, two hours of writing time, and forty-five minutes for scanning, compilation, and submission. There will be no restriction on permitted materials for this "take home" exam.
- The exam will be be based on material that is covered in the lectures and reading up to the end of week 4 and the tutorials up to the end of week 5. Questions can potentially be drawn from any component of this material. This includes any material that is covered in lectures, or covered in tutorials (including both tutorial questions and additional practice questions), or covered in assigned readings, or covered in some combination of these sources.
- The date and time of the mid-semester exam will be determined by the central administration of the ANU. It will be announced after it has been determined.
- The mid-semester exam is potentially worth 20 % of your mark for this course.
- Note that this assessment component is redeemable against the mid-semester exam. This means that it will only count if you receive a higher percentage mark for this assessment component than you do for the final exam. This will be calculated automatically. No action is required on your part.
- If you sit the exam in week 6, we will endeavour to provide your mark for the mid-semester exam to you by the end of week 7. It is also anticipated that we will go through the mid-semester exam in class during week 7. Please note, however, that this is contingent on there being no outstanding deferred mid-semester exams that have not been held at that stage. In order to ensure fair treatment of all students, we will be unable to announce the mid-semester exam results or go through the mid-semester exam in class until all of the deferred mid-semester exams, if there are any such exams, have been held.
- Please note that, where possible, deferred mid-semester exams will be held at some point during week 7.
Assessment Task 3
Learning Outcomes: 1, 2, 3.
- Given the restrictions associated with the COVID-19 pandemic, the final exam will take the form of a "take home" exam that is implemented through the Wattle site for the course. This would involve a four hour exam period, with a "suggested" or "indicative" allocation of that time involving fifteen minutes of reading time, three hours of writing time, and forty-five minutes for scanning, compilation, and submission. There will be no restriction on permitted materials for this "take home" exam.
- The exam will be comprehensive, in the sense that questions can potentially be drawn from any component of this class. This includes any material that is covered in lectures, or covered in tutorials (including both tutorial questions and additional practice questions), or covered in assigned readings, or covered in some combination of these sources.
- The date and time of the final exam will be determined by the central administration of the ANU. It will occur sometime during the official final exam period.
- The final exam is worth either 60 % or 80 % or 100 % of your overall mark for this class, depending on your relative performance in the tutorial assignments, the mid-semester exam, and the final exam.
- You will be able to request a breakdown of your mark for the final exam by question (and by each part of each question) after the official release of results for the semester.
- All learning outcomes are relevant for this assessment task.
Academic integrity is a core part of the ANU culture as a community of scholars. At its heart, academic integrity is about behaving ethically, committing to honest and responsible scholarly practice and upholding these values with respect and fairness.
The ANU commits to assisting all members of our community to understand how to engage in academic work in ways that are consistent with, and actively support academic integrity. The ANU expects staff and students to be familiar with the academic integrity principle and Academic Misconduct Rule, uphold high standards of academic integrity and act ethically and honestly, to ensure the quality and value of the qualification that you will graduate with.
The Academic Misconduct Rule is in place to promote academic integrity and manage academic misconduct. Very minor breaches of the academic integrity principle may result in a reduction of marks of up to 10% of the total marks available for the assessment. The ANU offers a number of online and in person services to assist students with their assignments, examinations, and other learning activities. Visit the Academic Skills website for more information about academic integrity, your responsibilities and for assistance with your assignments, writing skills and study.
You will be required to electronically sign a declaration as part of the submission of your assignment. Please keep a copy of the assignment for your records. Unless an exemption has been approved by the Associate Dean (Education) submission must be through Turnitin.
For some forms of assessment (hand written assignments, art works, laboratory notes, etc.) hard copy submission is appropriate when approved by the Associate Dean (Education). Hard copy submissions must utilise the Assignment Cover Sheet. Please keep a copy of tasks completed for your records.
No submission of assessment tasks without an extension after the due date and time will be permitted in this course. If an assessment task is not submitted by the due date and time, a mark of 0 will be awarded.
Accepted academic practice for referencing sources that you use in presentations can be found via the links on the Wattle site, under the file named “ANU and College Policies, Program Information, Student Support Services and Assessment”. Alternatively, you can seek help through the Students Learning Development website.
Please refer to the information on this that was provided above in the discussion of the various assessment tasks.
Extensions and Penalties
Extensions and late submission of assessment pieces are covered by the Student Assessment (Coursework) Policy and Procedure. Extensions may be granted for assessment pieces that are not examinations or take-home examinations. If you need an extension, you must request an extension in writing on or before the due date. If you have documented and appropriate medical evidence that demonstrates you were not able to request an extension on or before the due date, you may be able to request it after the due date.
Resubmission of Assignments
No resubmission of any assignment after the due date and time for its submission will be permitted in this class.
Distribution of grades policy
Academic Quality Assurance Committee monitors the performance of students, including attrition, further study and employment rates and grade distribution, and College reports on quality assurance processes for assessment activities, including alignment with national and international disciplinary and interdisciplinary standards, as well as qualification type learning outcomes.
Since first semester 1994, ANU uses a grading scale for all courses. This grading scale is used by all academic areas of the University.
Support for students
The University offers students support through several different services. You may contact the services listed below directly or seek advice from your Course Convener, Student Administrators, or your College and Course representatives (if applicable).
- ANU Health, safety & wellbeing for medical services, counselling, mental health and spiritual support
- ANU Diversity and inclusion for students with a disability or ongoing or chronic illness
- ANU Dean of Students for confidential, impartial advice and help to resolve problems between students and the academic or administrative areas of the University
- ANU Academic Skills and Learning Centre supports you make your own decisions about how you learn and manage your workload.
- ANU Counselling Centre promotes, supports and enhances mental health and wellbeing within the University student community.
- ANUSA supports and represents undergraduate and ANU College students
- PARSA supports and represents postgraduate and research students