University of Windsor

Department of Economics
ECON 4240
Advanced Microeconomics II
Winer 2021

Course Objective: This course covers a variety of topics in advanced microeconomics. We start by examining
the behavior of a monopolist. Then, we consider imperfect competition. Finally, we build more realistic models
by modifying some assumptions on information, externalities, and time.

Instructor: Christian Trudeau

E-mail: trudeauc@uwindsor.ca
Office Hours: by email

Graduate assistant: Gaofan Zhang

E-mail: zhang1yt@uwindsor.ca

Mode of delivery: You will receive the lectures of the week in advance (powerpoints). It is your duty to read
and work on those BEFORE the lecture. During the live lectures, I will quickly summarize the lesson of the
day (see calendar below) and go over some of the trickier parts with you, as well as take your questions.
Again, I will NOT go over all parts during the live sessions. I expect this part to last about 45 minutes.
On Mondays, the remaining 30 minutes will be dedicated to solving and discussing the assignment from the
previous week. On Wednesdays, they will be used to discuss the current assignment. Attendance to live
lectures is NOT mandatory.

Lectures will be on Blackboard Collaborate (“Virtual Classroom”, via the course Blackboard site).

Grading: 11 assignments. With the TA I will grade 7 of those randomly. The six best will each be worth
10% of the final grade.
Assignments are posted after the Thursday lecture and due the following Monday at 8:30am.
You will submit your assignment as a PDF file through Blackboard.

Final evaluation: 40% of final grade. The final evaluation will be done over 24 hours. (more
details TBD)

Please note that the assignments and final evaluation are complementary: the assignments
will be more mathematical in nature (solving problems, completing proofs, etc.) while the
final evaluation will be more about your comprehension of the concepts (explaining the
meaning of theorems, drawing some parallels between concepts, etc.).

Textbook: W. Nicholson and C. Snyder, Microeconomic Theory, Basic Principles and Extensions,
Twelfth Edition, South-Western, 2016.

Supplementary Textbooks and Readings

W. Nicholson, I. Lipnowski, Intermediate Microeconomics and its Applications, First Canadian edition,
Thomson-Nelson, 2008

R. Pindyck, D. Rubinfeld, Microeconomics, 9th edition, Pearson Prentice-Hall, 2017.

A. Mas-Colell, M. D. Whinston, and J. R. Green, Microeconomic Theory, Oxford Univ. Press, 1995.

G. Jehle, P. Reny, Advanced Microeconomics Theory, 3rd edition, Addison-Wesley, 2010.

H. R. Varian, Microeconomic Analysis, Third edition, W. W. Norton & Company, 1992

D. M. Kreps, A Course in Microeconomic Theory, Princeton University Press, 1990

Academic integrity: “Students of the University of Windsor pursue all endeavours with honour and
integrity, and will not tolerate or engage in academic or personal dishonesty”

“As a student of the University of Windsor, I pledge to pursue all endeavours with honour and
integrity, and will not tolerate or engage in academic or personal dishonesty”

As defined in the Windsor Student Code of Conduct and Senate Bylaw 31 on Academic Integrity, this
pledge covers but is not limited to cheating, plagiarizing or misrepresenting the ideas of someone else,
unauthorized assistance/collaboration, and falsifying data.

Course Content:

Week Lecture 1 Lecture 2 Evaluation

1 January 7
Chapter 14 – Part 1
Classic Monopoly
2 January 12 January 14 Assignment 1
Chapter 14 – Part 2 Chapter 14 – Part 3
Distortions and price discrimination 2nd and 3rd degree price discrimination
3 January 19 January 21 Assignment 2
Chapter 14 – Part 4 Chapter 8 – Part 1
Bundling, tied sales and regulations Intro to game theory and Nash equil.
4 January 26 January 28 Assignment 3
Chapter 8 – Part 2 Chapter 8 – Part 3
Mixed strategies Sequential games
5 February 2 February 4 Assignment 4
Chapter 8 – Part 4 Chapter 15 – Part 1
Bayesian-Nash equilibrium Bertrand and Cournot oligopolies
6 February 9 February 11 Assignment 5
Chapter 15 – Part 2 Chapter 15 – Part 3
Solutions to Bertrand Paradox Tacit collusion and leadership
7 Reading week Reading week
8 February 23 February 25 Assignment 6
Chapter 15 – Part 4 Chapter 15 – Part 5
Entry deterrence Monopolistic competition
9 March 2 March 4 Assignment 7
Recap and consolidation Chapter 18 – Part 1
Principal-agent model
10 March 9 March 11 Assignment 8
Chapter 18 – Part 2 Chapter 18 – Part 3
Hidden action model Hidden type model
11 March 16 March 18 Assignment 9
Chapter 18 – Part 4 Chapter 18 – Part 5
Insurance Market for lemons, auctions
12 March 23 March 25 Assignment 10
Chapter 19 – Part 1 Chapter 19 – Part 2
Asymmetries Efficient solutions
13 March 30 April 1 Assignment 11
Chapter 19 – Part 3 Chapter 19 – Part 4
Public goods Resource allocations
14 April 6
Recap and questions
Exam Final evaluation
Period
Important Notes

1. Students are responsible for knowing and adhering to the University of Windsor’s policies regarding
academic integrity, including the Student Code of Conduct.
2. A student who cannot complete the final evaluation because of health reason will have to fill out the
Student Medical Certificate available on the department website. Other forms are not accepted.
3. Unless you require a long-term leave of sickness (for instance following a COVID-infection), do not
ask for extensions or exemptions from the weekly assignments. The fact that only 7 are graded and
the best 6 count cover this.
4. March 17 is the last day to withdraw voluntarily from courses. After this date students remain
registered in courses and receive final grades as appropriate.
5. Student Evaluation of Teaching will be conducted during the last two weeks of scheduled classes.
6. The University of Windsor has an common grading key.
7. Feeling Overwhelmed? From time to time, students face obstacles that can affect academic
performance. If you experience difficulties and need help, it is important to reach out to someone.
For help addressing mental or physical health concerns on campus, contact (519) 253-3000:
- Student Health Services at ext. 7002 (http://www.uwindsor.ca/studenthealthservices/)
- Student Counselling Centre at ext. 4616 (http://www.uwindsor.ca/studentcounselling/)
- Peer Support Centre at ext. 4551 24 Hour Support is Available - My Student Support Program
(MySSP) is an immediate and fully confidential 24/7 mental health support that can be accessed for
free through chat, online, and telephone. This service is available to all University of Windsor
students and offered in over 30 languages. Call: 1-844-451-9700, visit
https://keepmesafe.myissp.com/ or download the My SSP app: Apple App Store/Google Play.
A full list of on- and off-campus resources is available at http://www.uwindsor.ca/wellness.
Should you need to request alternative accommodation contact your instructor, head or associate
dean.
8. Students with disabilities who require academic accommodations in this course must contact an
Advisor in Student Disability Services (SDS) to complete SDS Registration and receive the
necessary Letters of Accommodation. After registering with Student Disability Services, you must
present your Letter of Accommodation and discuss your needs with me as early in the term as
possible. Please note that deadlines for the submission of documentation and completed forms to
Student Disability Services are available on their website: /disability.
9. Given the pandemic, plans are subject to change, although students will be consulted.