ECON 425

Advanced Topics in Microeconomics
Kevin Wainwright
Office:3689 West Mall
Phone: (604)  291-5499
Fall 2006
Prerequisites: ECON 301, 305; 60 credit hours.


This course introduces students to the economics of imperfect competition. Topics covered include the theory of the firm, market structure, and various aspects of firm strategy such as pricing, advertising, product differentiation, and innovation. The focus will be on anti-competitive behaviour.

Required Texts:

Note: This is a topic based seminar course. Some topics will be reading specific, in other cases the readings supply the necessary backgound to support discussion. As such, students will be responsible for all readings related to the topic, not just what is covered in the lecture.


The course grade will be based on a final exam (40%), assignments and quizzes (30%), and a term paper (30%).



Theory of the firm
  • Property Rights Model
  • Price discrimination and Vertical Restraints
  • Principle Agent
  • TEXT: Chapters 18, 19
  • Market structure
    • Oligopoly
    • Dixit and Stackelberg Models
    • Bertrand versus Cournot models
  • TEXT: Chapters 9, 10, 11
  • Monopoly and Entry Barriers
    • Limit Output
    • Contestable Markets
    • Predatory Pricing
    • The role of capacity
  • TEXT: Chapters 12, 13
  • Product differentiation
    • Monopolistic Competition
    • Spatial Models
  • TEXT: Chapter 7
  • Information, Advertising, and Signalling
  • TEXT: Chapters 20, 21
  • Anti-Trust, Regulation, and competitive behaviour

    Complete Reading List:

    For a more complete list of recommended articles for 400 level economics students, click here