1

The University of British Columbia

Department of Economics Winter Term 2

ECON 406 001: Topics in Microeconomics

Instructor: Dhimitri Qirjo

Pre-requisite Courses Please note that all students registered for this course must have taken one of ECON 301,

ECON 304, and one of ECON 303, ECON 306.

Course Description: This course examines relations among market structure, economic efficiency, welfare,

and international trade. This class will provide an analysis of firms‟ behavior under

different industrial structures, such as perfect & monopolistic competition, oligopoly, and

monopoly. Specific topics covered include auctions, advertisement, product

differentiation, and their applications in international trade. We will examine how firms

create profitable opportunities and respond to competitive threats. We will see how firms‟

profits depend on the structural characteristics of industries in which they participate. We

will also examine the firm‟s entry and exit decisions in some industries and analyze the

story behind the firms‟ decision whether to export or/and FDI.

Required texts 1) Modern Industrial Organization, by Dennis W. Carlton & Jeffrey M. Perloff,

Addison-Wesley 4th

Edition, ISBN-10: 0321180232, ISBN-13: 978-031180230.

Texts can be purchased new at the University bookstore.

The Companion Website for the text is:

http://wps.aw.com/aw_carltonper_modernio_4/21/5566/1424930.cw/index.html

In the above website you can find chapter by chapter study guide that can help

you prepare for the midterm and the final exam.

2) The Economics of the World Trading System, by Kyle Bagwell & Robert W.

Staiger, The MIT Press New edition edition (Sep. 1, 2004), ISBN-10: 0-262-

52434-1, ISBN-13: 978-0-262-52434-6.

Texts can be purchased new at the University bookstore.

Class Time: Tue & Thu 9:30–11:00 AM Class Location: Hennings 304

Office Location: Buchanan Tower 909 Office Phone: (604)-822-4121

Office Hours: Tue & Thu 2:00–3:00 PM and by appointment

E-mail: qirjo@interchange.ubc.ca Website: http://faculty.arts.ubc.ca/dqirjo

2

Reading the textbook While my lectures are fairly all-inclusive, time constraints do not allow us to go into all

of the detail necessary for this course. Therefore, reading the textbooks is an excellent

preparation and learning tool. There will be times when my lecture material deviates

somewhat from the textbooks (e.g., definitions, the way in which subjects are covered,

sequencing, etc.). If you are in doubt, constantly follow my lectures in class and come to

visit me during my office hours.

Class Lectures You are expected to attend each class. Just as reading the textbooks will help you to learn

the material directly from the authors, attending class provides an opportunity for you to

gain a different perspective; both from the instructor and your fellow classmates. In

addition, valuable information about homework assignments, exams, and updates to the

syllabus will be announced in class. The best way to learn is to solve problems. I might

ask questions in class in order to practice the applications of the principles you are

learning, not to test or embarrass you. You should feel free to ask questions at anytime

during my lectures. I will do my best to answer your questions and also encourage you to

answer the questions of your classmates.

Homework Assignments Numerous homework assignments will be given to help everyone prepare for the exams.

Class attendance is essential, for the homework assignments must be submitted in class.

You are encouraged to work the homework assignments in groups of up to four students,

turning in one set of neatly written answers. However, if your answers are not neatly

written, I will require you to type all of your answers. The lowest homework grade will

be dropped. If you miss a homework assignment for whatever reason, then expect that

assignment to be the one that is dropped. NO MAKE-UP HOMEWORK

ASSIGNMENTS OR EXAMS WILL BE GIVEN.

Term Paper & Presentation Everyone enrolled in this class is required to write and present a paper concerning any

discussion/topic that is related with the second textbook (The Economics of the World

Trading System). The paper must be typed, well-written and clear. More specifically, the

paper should present an idea or event and discuss the current understanding of the

situation. Each one of you must clear the paper topic with me no later than 24th

February.

Try to be specific in your topic, and then present a well-organized presentation of that

topic. Please keep in mind that this is not original research. Therefore, make sure to

attribute what you say to appropriate sources. You will be graded essentially on how

much you teach me about the subject.

The technical details for the term paper are the following: Title & name and a bunch of

writing on the first page, max 5 pages (page 6 is the references). Type on Microsoft

Word, use times new roman, 12 point font throughout, double spaced, one inch margins,

number all pages. The paper is due on Tuesday March 22.

3

The details for the presentation are the following: You will have 10 minutes for a

PowerPoint presentation and 5 minutes for answering questions. The last four lectures of

this class will be devoted exclusively to students PowerPoint presentations.

Grading Policy There will be one midterm and one comprehensive final exam. You must write a term

paper and present it in class. Numerous homework assignments will be given to help

everyone prepare for the exams. Class attendance is essential, for the homework

assignments, presentations, and exams will be given in class. If you miss the midterm

with a valid excuse, then the final exams will be reweighted. This goes only for the

midterm. EVERYONE MUST TAKE THE FINAL EXAM.

Worth percentage of the course grade:

1) One midterm, worth 25% of your grade.

2) One final comprehensive exam worth 40% of your grade.

3) Term Paper and Presentation worth 15% of your grade.

4) Active class participation worth 5% of your grade.

5) Homework assignments worth the remaining 15% of your grade.

Course Policies Courtesy: Please try to come in class on time and plan to attend for the entire

lecture. Please turn your cell phones and other electronic devices off prior to entering the

classroom and do not bring your laptop; you will not need it. Your attitude and

participation in classes will determine border grades.

Exam policies: No books, notes, problem sets, cell phones, BlackBerries, laptop

computers, nor any other materials may be consulted during exams. You may not wear

baseball caps, any other head gear, or iPods to the exam. You must also bring your

Student ID to the exam.

Make-up policy: It is important that each exam be taken at the scheduled time

and date. No late make-up exams will be given. A legitimate excuse (the inability to

leave work on time, oversleeping, lack of transportation, simple colds/headaches, fatigue,

and so forth do not qualify as legitimate excesses) will be needed to qualify for an early

make-up. A student who misses an exam should submit written documentation to qualify

for a „no-grade‟ in an exam.

Note: Any excusable absence must be documented by a verifiable source and I must be

notified at least one week prior to the exam. If you are absent from an exam due to illness

or emergency, you must notify me by e-mail within 24 hours after the exam, and

verifiable documentation is still required.

NO Late Homeworks will be Accepted. One homework assignment will be dropped

(your lowest score), so if you miss one for an emergency, it may not have much affect, if

any, on your grade.

Grade Complaints: My grading system is 100% transparent. You can always

inquire about your grade standing at any time. If you wish to drop from the course, do so

before the deadlines. Pay attention to the following pleas (that the students usually use at

the end of the semester): 1) “I need a (insert grade) or else I will get kicked off the (insert

a sport) team”; 2) “I need a (insert grade) or else I will lose my scholarship or financial

aid”; 3) “I need a (insert grade) or else I will be expelled from (insert school, club, or

country)”. In each of these cases and others, no effort will be made to remedy the

4

situation while there was still ample time in the semester. As a result, I can only assign

the grade earned based on actual performance. FINAL GRADES ARE FINAL. They

are not negotiable. Please do not request grades through e-mail, as they will not be

provided.

Cheating: The University has an honor code to ensure the academic integrity at

UBC. Any student caught cheating on an exam or engaging in unethical behavior will

receive a grade of F for the course and the dean will be notified and asked to pursue

further action. (Be very careful: Cheating will not be tolerated; I take this matter very

seriously).

Comments and suggestions

I welcome your comments and suggestions for improving this class. You may speak with

me in person, or send me an email, or leave an anonymous note in my mailbox in the

economics department.

Tentative Course Schedule (Subject to change)

Topics in Microeconomics Modern Industrial Organization

Tuesday, January 4, 2011 Syllabus and Introduction

Thursday, January 6, 2011 Ch 2. The firm and the costs

Tuesday, January 11, 2011 Ch. 3. Perfect Competition

Thursday, January 13, 2011 Ch. 4. Monopoly

Tuesday, January 18, 2011 Ch. 4. Dominant Firm with a Competitive Fringe

Thursday, January 20, 2011 Ch. 6. Oligopoly: Game Theory

Tuesday, January 25, 2011 Lecture Notes: Game Theory: Common Knowledge

Thursday, January 27, 2011 Ch. 6. Game Theory: Mixed Strategies & Repeated Games

Tuesday, February 1, 2011 Ch. 6. Cournot & Stackelberg Equilibria

Thursday, February 3, 2011 Lecture Notes: Oligopoly and Inter. Trade (Brander-Spencer Model)

Tuesday, February 8, 2011 Ch. 7. Monopolistic Competition & Representative Consumer Model

Thursday, February 10, 2011 Ch. 7. Monopolistic Competition & Spatial Models

Tuesday, February 15, 2011 Term Break, No Class

Thursday, February 17, 2011 Term Break, No Class

Tuesday, February 22, 2011 Ch. 7. Monopolistic Competition & Hybrid Models

Thursday, February 24, 2011 Midterm

Tuesday, March 1, 2011 Lecture Notes: Love of Variety (Dixit-Stiglitz model, 1977 AER)

Thursday, March 3, 2011 Lecture Notes: Love of Variety (Krugman model, 1980 AER)

Tuesday, March 8, 2011 Lecture Notes: Love of Variety (Krugman model, 1980 AER)

Thursday, March 10, 2011 Lecture Notes: Melitz Model

Tuesday, March 15, 2011 Lecture Notes: Melitz Model

Thursday, March 17, 2011 Lecture Notes: Export and FDI ((Helpman, Melitz and Yeaple model)

Tuesday, March 22, 2011 Lecture Notes: Export and FDI ((Helpman, Melitz and Yeaple model)

Thursday, March 24, 2011 Ch. 14 Advertising and disclosure

Tuesday, March 29, 2011 Ch. 14 Advertising and disclosure

Thursday, March 31, 2011 Ch. 18. International Trade

Tuesday, April 5, 2011 Students’ PowerPoint Presentations

Thursday, April 7, 2011 Students’ PowerPoint Presentations

April 15 Final Exam: Cumulative Exam

GOOD LUCK!