The course will focus on Microeconomic theory as an approach to organizing economic ideas through modelling.

This course will examine some basic components of economic theory concerning the allocation of scarce resources:individual non-strategic decision making by consumers and firms, Markets and General Equilibrium, Game Theory for extending the models of consumers and producers to strategic settings (with an emphasis on asymmetric information and mechanism design), and models of how decisions are made in non market settings through political institutions or within firms.

Along the way we will consider how to include uncertainty in models and how to establish the existence of equilibria/optima and the comparative static properties of these predicted outcomes.

Learning Outcomes

Upon successful completion, students will have the knowledge and skills to:

1. Individual Decision Makers: State and prove the fundamental properties of consumer and producer behaviour in neoclassical economics
2. Markets: explain and apply the results of, Game Theory and General Equilibrium in understanding the properties of basic market structures.
3. Mechanism Design: use mechanism design techniques to establish the structure of optimal incentive contracts and apply contract design to solve economic problems.
4. Uncertainty: explain and apply the results of, and methods used in, expected utility theory
5. Non-market allocation: state and prove the fundamental results of social choice, voting and managerial hierarchies; know the characteristics of some practical solutions to non-market allocation systems.
6. Modelling: Describe relevant economic situations as games or optimization problems.
7. Solving: Use curvature and monotonicity properties to establish the solutions and comparative static properties for relevant economic models.  

Research-Led Teaching

Students will learn the foundations of modern microeconomic theory and the course will provide them an opportunity to familiarize with research questions and results in this field of economics. Further, students will have exposure to discipline-specific research methods and techniques, thus the course will provide them an opportunity to develop these skills.

Examination Material or equipment

Non-programmable calculators are permitted on exams.

Recommended Resources

D. M. Kreps (2013). Microeconomic Foundations I: Choice and Competitive Markets. Princeton University Press.

R. Myerson (1997). Game Theory: Analysis of Conflict.

G. A. Jehle, and P. J. Reny (2001). Advanced Microeconomic Theory.

A. Mas-Colell, M.D. Whinston, and J.R. Green (1995). Microeconomic Theory. Oxford University Press.

I. Gilboa (2009). Theory of Decision under Uncertainty. Cambridge University Press.

G.J. Mailath (2019). Modeling Strategic Behavior. World Scientific.

M. Maschler, E. Solan, and S. Zamir (2013). Game Theory. Cambridge University Press.

T. Börgers (2015). An Introduction to the Theory of Mechanism Design. Oxford University Press.

Textbooks and additional readings will be available on reserve or as electronic versions on Wattle.

Staff Feedback

Students will be given verbal feedback during and after lectures and tutorials. Individual feedback as well as discussions of solutions of assignments will be given during office hours.

Student Feedback

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). Feedback can also be provided to Course Conveners and teachers via the Student Experience of Learning & Teaching (SELT) feedback program. SELT surveys are confidential and also provide the Colleges and ANU Executive with opportunities to recognise excellent teaching, and opportunities for improvement.

Class Schedule

Week/Session	Summary of Activities	Assessment
1	Choice
2	Preferences	Weekly assignment
3	Choice under uncertainty	Weekly assignment
4	Risk and uncertainty	Weekly assignment
5	Basic models of games	Weekly assignment
6	Normal-form games	Weekly assignment
7	Games of incomplete information	Weekly assignment
8	Extensive-form games	Weekly assignment
9	Games with communication and correlated equilibria	Weekly assignment
10	Information economics 1	Weekly assignment
11	Information economics 2	Weekly assignment
12	Review	Weekly assignment

Tutorial Registration

ANU utilises MyTimetable to enable students to view the timetable for their enrolled courses, browse, then self-allocate to small teaching activities / tutorials so they can better plan their time. Find out more on the Timetable webpage. https://www.anu.edu.au/students/program-administration/timetabling].

Assessment Summary

Assessment task	Value	Learning Outcomes
Weekly assignments (30%)	30 %	1,2,3,4,5,6,7
Final exam (70%)	70 %	1,2,3,4,5,6,7

* If the Due Date and Return of Assessment date are blank, see the Assessment Tab for specific Assessment Task details

Policies

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 Integrity Rule before the commencement of their course. Other key policies and guidelines include:

• Academic Integrity Policy and Procedure
• Student Assessment (Coursework) Policy and Procedure
• Extenuating Circumstances Application
• Student Surveys and Evaluations
• Deferred Examinations
• Student Complaint Resolution Policy and Procedure
• Code of practice for teaching and learning

Assessment Requirements

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 Skills website. 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.

Participation

Lectures will be face-to-face, but Echo360 recordings will be made available. Tutorials will be face-to-face.

Assessment Task 1

Weekly assignments (30%)

Students are required to submit written solutions to weekly assignment problems, with the exception of week 1 of the semester. The 9 highest marks out of these 11 assignments will be used to compute the 30% assignment component of the final grade. Assignment questions will be released on the Monday of each week, and must be submitted through Turnitin by 6pm Friday of the following week (that is, assignments are due approximately 10 days after posted). Graded assignments will be returned to students a week after submission. Assignment questions will expand on the topics and ideas covered in class during that week. You may discuss the assignment problems with other students, but each student is required to submit their own written solution. Assignments will be submitted electronically. Answers will be provided on Wattle during the week after submission.

Assessment Task 2

Final exam (70%)

The final exam will cover material discussed throughout the entire course. It is compulsory, closed-book, on campus, invigilated, and will be scheduled during the end-of-semester examination period. Students will have a writing period of 90 minutes for the final exam. Further details will be provided on Wattle in week 10.

Academic Integrity

Academic integrity is a core part of the ANU culture as a community of scholars. The University’s students are an integral part of that community. The academic integrity principle commits all students to engage in academic work in ways that are consistent with, and actively support, academic integrity, and to uphold this commitment by behaving honestly, responsibly and ethically, and with respect and fairness, in scholarly practice.

The University expects all staff and students to be familiar with the academic integrity principle, the Academic Integrity Rule 2021, the Policy: Student Academic Integrity and Procedure: Student Academic Integrity, and to uphold high standards of academic integrity to ensure the quality and value of our qualifications.

The Academic Integrity Rule 2021 is a legal document that the University uses to promote academic integrity, and manage breaches of the academic integrity principle. The Policy and Procedure support the Rule by outlining overarching principles, responsibilities and processes. The Academic Integrity Rule 2021 commences on 1 December 2021 and applies to courses commencing on or after that date, as well as to research conduct occurring on or after that date. Prior to this, the Academic Misconduct Rule 2015 applies.

 

The University commits to assisting all students to understand how to engage in academic work in ways that are consistent with, and actively support academic integrity. All coursework students must complete the online Academic Integrity Module (Epigeum), and Higher Degree Research (HDR) students are required to complete research integrity training. The Academic Integrity website provides information about services available to assist students with their assignments, examinations and other learning activities, as well as understanding and upholding academic integrity.

Online Submission

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.

Hardcopy Submission

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.

Late Submission

No submission of assessment tasks without an extension after the due date will be permitted. In this case, a mark of 0 will be awarded.

Referencing Requirements

The Academic Skills website has information to assist you with your writing and assessments. The website includes information about Academic Integrity including referencing requirements for different disciplines. There is also information on Plagiarism and different ways to use source material.

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.

Privacy Notice

The ANU has made a number of third party, online, databases available for students to use. Use of each online database is conditional on student end users first agreeing to the database licensor’s terms of service and/or privacy policy. Students should read these carefully. In some cases student end users will be required to register an account with the database licensor and submit personal information, including their: first name; last name; ANU email address; and other information.
In cases where student end users are asked to submit ‘content’ to a database, such as an assignment or short answers, the database licensor may only use the student’s ‘content’ in accordance with the terms of service – including any (copyright) licence the student grants to the database licensor. Any personal information or content a student submits may be stored by the licensor, potentially offshore, and will be used to process the database service in accordance with the licensors terms of service and/or privacy policy.
If any student chooses not to agree to the database licensor’s terms of service or privacy policy, the student will not be able to access and use the database. In these circumstances students should contact their lecturer to enquire about alternative arrangements that are available.

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 Access 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 all ANU students