Simon Fraser University
Engaging the World

Course Outlines

Spring 2026 - ECON 302 D100

Microeconomic Theory II: Strategic Behavior (4)

Class Number: 1767

Delivery Method: In Person

Overview

  • Course Times + Location:

    Jan 5 – Apr 10, 2026: Mon, 12:30–2:20 p.m.
    Burnaby

    Jan 5 – Apr 10, 2026: Wed, 12:30–1:20 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:

This course will introduce students to game theory and strategic behavior. Game theory is an essential part of an economist’s toolbox.  It has wide applications in all branches of economics, as well as other disciplines such as political science, biology, and psychology. We will cover topics like choice under uncertainty, game theory (simultaneous move games, sequential move games, games of asymmetric information, bargaining games) and its applications, and market failure (market power, public goods and externalities).

Week 1 :  Introduction & Competitive Markets and Efficiency

Week 2:  Monopoly

Week 3:  Pricing Strategies

Week 4: Externalities and Public Goods

Week 5: Uncertainty and Risk

Week 6: Uncertainty and Risk, Cont’d  Adverse Selection

Week 7: Adverse Selection, Cont’d

Week 8- Midterm Exam

               Signalling and Moral Hazard

Week 9: Signalling and Moral Hazard, Cont’d

Week 10: Game Theory and Competitive Strategy

Week 11: Applications of Nash Equilibrium

Week 12-13: Sequential Games-Repeated Games

 

Grading

  • Tutorial Attendance 10%
  • 3 in‐class quizzes (5 % each) 15%
  • Midterm Exam 25%
  • Final Exam 50%

Materials

RECOMMENDED READING:

Any of the following textbooks (any edition is fine): 

  1. Varian, H. R., Intermediate Microeconomics, W. W. Norton. 
  2. Besanko and Braeutigam,Microeconomics, Wiley. 
  3. Perloff, Microeconomics: Theory and Applications with Calculus, Pearson Education. 
  4. McAfee and Lewis, Introduction to Economic Analysis, Saylor Foundation. 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.