Simon Fraser University
Engaging the World

Course Outlines

Fall 2025 - ECON 402 D100

Advanced Microeconomic Theory (4)

Class Number: 1069

Delivery Method: In Person

Overview

  • Course Times + Location:

    Sep 3 – Dec 2, 2025: Tue, 2:30–4:20 p.m.
    Burnaby

    Sep 3 – Dec 2, 2025: Thu, 10:30–11:20 a.m.
    Burnaby

  • Exam Times + Location:

    Dec 15, 2025
    Mon, 12:00–3:00 p.m.
    Burnaby

  • Prerequisites:

    ECON 302 and 331, with a minimum grade of C-. Students who have completed both MATH 232 and 251 may substitute these courses for ECON 331. Entry into this course requires a minimum CGPA of 3.0 or permission of the department.

Description

CALENDAR DESCRIPTION:

Advanced coverage of microeconomic theory for students intending to pursue graduate study in economics. Topics may include general equilibrium, game theory, and asymmetric information.

COURSE DETAILS:

Economics 402 is designed to give you a deeper understanding of the central, full information, microeconomic model. The course is intended to develop skills that will either complement future graduate work or be useful in the marketplace for those terminating their formal economic training at the undergraduate level. A secondary goal is to further your economic verbal and critical thinking skills. To develop your economic analytic capabilities, necessary attention will be paid to the mathematical, theoretical, and philosophical foundations of the competitive economic model, but this will be followed by sophisticated applications. To the extent time permits, we will move on to models of costly information, based on the theory of economic property rights and examine the theory of the firm.

COURSE-LEVEL EDUCATIONAL GOALS:

A. Methodology

  1. Alchian “Uncertainty, Evolution, and Economic Theory" Journal of Political Economy 1950, pp. 211-21.
  1. Friedman “The Methodology of Positive Economics" in Essays in Positive Economics (Chicago: University of Chicago Press, 1953).
  1. McCloskey “The Rhetoric of Economics" Journal of Economic Literature June 1983.
  1. Dutta and Radner “Profit Maximization and the Market Selection Hypothesis" Review of Economic Studies 1999.
  2. Somerset Maugham, “The Verger"
  3. Silberberg, Structure of Economics, Chapter 1, Comparative Static Methods.

B. Utility and Demand

  1. Silberberg, Structure of Economics, Chapter 10.

C. Demand Topics

    8. Amartya Sen, “Rational Fools: A Critique of the Behavioral Foundations of Economic Theory" Philosophy & Public Affairs, Summer, 1977, Vol. 6, No. 4

  1. Becker, “Irrational Behavior and Economic Theory" Journal of Political Economy” February 1962.
  2. Umbeck “Shipping the Good Apples Out: Some Ambiguities in the Interpretation of `Fixed Charge'", JPE 1980, 88 no. 1.
  3. Kaempfer and Brastow, “The Effect of Unit Fees on the Consumption of Quality", EI 1985.
  4. Silberberg, Structure of Economics, Chapter 11.5, Consumer's Surplus
  5. Barzel, “Rationing By Waiting" Journal of Law and Economics 1974.
  6. Barzel, “The Testability of the Law of Demand" in Sharpe and Cootner (eds) Financial Economics: Essays in Honor of Paul Cootner 1982.
  1. Wing Suen, “Statistical models of consumer behavior with heterogeneous values and constraints." Economic Inquiry 1990.

D. Costs and Supply

  1. Alchian, A. “Costs" in Economic Forces At Work
  2. Alchian, A. “Costs and Output" in Economic Forces At Work
  3. Silberberg, Structure of Economics, Chapter 8
  4. Silberberg, Structure of Economics, Chapter 11.4, Household Production

E. Costly Information, Property Rights, and Transaction Costs

  1. Coase, “The Problem of Social Cost" Journal of Law and Economics 1960.
  2. Barzel and Allen Economic Analysis of Property Rights Cambridge University Press, 2023. Chapters 1-5.

F. The Firm

  1. Coase, “The Nature of the Firm" Economica 1937.
  2. Klein and Leffler “The Role of Market Forces in Assuring Contractual Performance" Journal of Political Economy 1981.
  3. Barzel and Allen Economic Analysis of Property Rights Cambridge University Press, 2023. Chapters 6-7.

Grading

  • Participation 20%
  • Term Paper 15%
  • Problem sets 10%
  • Midterm Exam 20%
  • Final Exam 35%

NOTES:

In this class you will be expected to: i) attend and participate in ALL class discussions; ii) hand in (almost) weekly problem sets; and iii) write a small, applied theory paper. There will be a midterm and final exam.

Materials

REQUIRED READING:

There is no textbook for the class, but for the mathematical parts of the course I'll
be referencing Gene Silberberg's classic text which is available for free at:
https://www.academia.edu/103956845/The Structure of Economics A Mathematical Analysis

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.