Simon Fraser University
Engaging the World

Course Outlines

Fall 2025 - ECON 302 D100

Microeconomic Theory II: Strategic Behavior (4)

Class Number: 1059

Delivery Method: In Person

Overview

  • Course Times + Location:

    Sep 3 – Dec 2, 2025: Wed, 9:30 a.m.–12:20 p.m.
    Burnaby

  • Prerequisites:

    ECON 201 with a minimum grade of C-; 45 units.

Description

CALENDAR DESCRIPTION:

Aspects of microeconomic theory concerned with strategic behavior, imperfect information, and market failure. Topics include game theory and oligopoly; uncertainty and insurance; asymmetric information and market power, externalities and public goods, together with related issues in welfare economics.

COURSE DETAILS:

Note
This course is reserved for declared ECON major students

This course will introduce students to real-world scenarios where markets do not deliver efficient outcomes. As we will see, those situations are rather the norm, not the exception. We will explore how market participants cope with market failure through contractual or other arrangements, and how government intervention can (or cannot) help. We will also learn the basics of game theory, which is a tool in the economist’s toolbox that can help us think about strategic behavior. It has wide applications in all branches of economics, as well as other disciplines such as political science, biology, and psychology.

Course Contents:

Module 1   Introduction, Competitive Markets and Efficiency

Module 2   Monopolistic Behavior

Module 3   Externalities and Public Goods

Module 4   Uncertainty and Risk

Module 5   Adverse Selection, Signaling, and Moral Hazard

Module 6   Game Theory I: Simultaneous Move Games, Nash Equilibrium, and Applications

Module 7   Game Theory II: Sequential Games, Subgame Perfect Equilibrium

Grading

  • Participation 15%
  • Quizzes 35%
  • One Midterm 25%
  • One end of term exam 25%

NOTES:

  • Participation score is comprised of tutorial attendance and in-class worksheets
  • The quizzes are conducted in the tutorial
  • Both the midterm and the end of term exams are in class exams

Materials

REQUIRED READING:

None

RECOMMENDED READING:

  • Perloff, Microeconomics: Theory and Applications with Calculus Pearson Education.
  • Varian, Intermediate Microeconomics with Calculus. W. W. Norton.
  • McAfee and Lewis, Introduction to Economic Analysis, Flatworld Knowledge. https://open.umn.edu/opentextbooks/textbooks/47

REQUIRED READING NOTES:

Your personalized Course Material list, including digital and physical textbooks, are available through the SFU Bookstore website by simply entering your Computing ID at: shop.sfu.ca/course-materials/my-personalized-course-materials.

Department Undergraduate Notes:

Please note that, as per Policy T20.01, the course requirements (and grading scheme) outlined here are subject to change up until the end of the first week of classes.

Final exam schedules will be released during the second month of classes. If your course has a final exam, please ensure that you are available during the entire final exam period until you receive confirmation of your exam dates. 

Students requiring accommodations as a result of a disability must contact the Centre for Accessible Learning (CAL) at 778-782-3112 or caladmin@sfu.ca.

***NO TUTORIALS DURING THE FIRST WEEK OF CLASSES***

Registrar Notes:

ACADEMIC INTEGRITY: YOUR WORK, YOUR SUCCESS

At SFU, you are expected to act honestly and responsibly in all your academic work. Cheating, plagiarism, or any other form of academic dishonesty harms your own learning, undermines the efforts of your classmates who pursue their studies honestly, and goes against the core values of the university.

To learn more about the academic disciplinary process and relevant academic supports, visit: 


RELIGIOUS ACCOMMODATION

Students with a faith background who may need accommodations during the term are encouraged to assess their needs as soon as possible and review the Multifaith religious accommodations website. The page outlines ways they begin working toward an accommodation and ensure solutions can be reached in a timely fashion.