Intermediate Microeconomic Theory
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1 Course Number: Econ 311 Credits: 4 CRN: Time: TR 12pm-1:50pm Room: Milam Hall 019 Instructor: Beau Olen Office: 307H Ballard Extension Hall Office Hours: TR 3-4pm or by appointment beau.olen@oregonstate.edu Office Phone: Intermediate Microeconomic Theory Textbook: Pindyck, Robert S. and Daniel L. Rubinfeld, Microeconomics, Eighth Edition, Pearson, Course Description: An examination of demand theory, production and cost theory, game theory, behavioral economics, competitive and imperfectly competitive markets, and general equilibrium and welfare economics. Student Learning Outcomes: By the end of the course, you should be able to understand: 1. Consumer theory: How households make decisions in the face of scarcity and how these decisions vary in response to changes in the economic environment. 2. Firm theory: How firms make decisions in the face of scarcity and how these decisions vary in response to changes in the economic environment. 3. The organization of markets: How perfectly competitive, monopolistic, monopolistically competitive, and oligopolistic markets are organized and the outcomes of these markets. 4. Government intervention: How government policies can influence consumer, firm, and market decisions, with applications in asymmetric information, externalities, public goods, and redistribution. Assessment of Outcomes Assignment Percentage Problem Sets (best 5 out of 6) 20% Midterm #1 25% Midterm #2 25% Final Exam 25% In-class Problems 5% Course Website: Available through Canvas. In the Modules section, I will post lecture slides, problem sets, in-class exercises, sample midterm exams, and answer keys. Your grades will be posted in the Grades section. 1
2 Problem Sets: There will be six graded problem sets that will help guide you to the types of problems that will be found in the exams. I encourage you to work in groups towards solving the problems, but please turn in your own write-up of the answers. Your best five scores on these problems sets will count towards the problem set grade in this course, the lowest scoring problem set will be dropped. Exams: There will be three exams, two mid-terms (May 4) and one comprehensive final exam (June 1). Exams may include multiple choice, matching, short-answer and short essay questions. Students should be prepared to answer questions with writing, mathematics, and graphs. Make-up exams will not be given except under extraordinary circumstances with appropriate documentation. If you miss either midterm for legitimate and documented reason, the final exam will replace your midterm exam grade. In compliance with university policy, if you miss any of the exams without my approval, you will receive a score of zero for that exam. In-Class Problems: Most class sessions, we will have one or more in-class problems to complete. You will earn credit for submitting these assignments but they will not be graded. There are no makeup points for these in-class exercises, and points are earned at the time during the class period when the problems are assigned. Grading Scale: Letter Percentage Letter Percentage Letter Percentage Grade A % Grade B % Grade D % A % C % D 63-67% B % C 73-77% D % B 83-87% C % F 0-59% Class Conduct: I will conduct class in a relaxed way, but here are some guidelines about what I consider appropriate behavior: If you must arrive to class a few minutes late, please enter quietly in an effort to minimize disturbances for other students. If you must leave early, please let me know prior to class. I encourage those who need to leave early to sit close to the door so as to minimize disruptions. While eating and drinking is allowed during class, please make sure that your doing so does not disrupt others. Keep cell phone use to a minimum. Silence your phone during the lectures. If you need to make a call, please leave the room quietly as to not disrupt the lecture. If you cannot make it to class for any reason, make sure that you get the lecture notes from one of your classmates. If you make an appointment with me, keep it, or at least notify me as soon as possible that you cannot make it. 2
3 Expectations for Student Conduct: Everyone is expected to treat each other with respect in this class. Student conduct is governed by the university s policies, as explained in the Student Conduct Code. Academic Integrity: Students are expected to comply with all regulations pertaining to academic honesty. For further information, visit Academic Integrity for Students, or contact the office of Student Conduct and Mediation at OAR (2) Academic or Scholarly Dishonesty. Statement Regarding Students with Disabilities: Accommodations for students with disabilities are determined and approved by Disability Access Services (DAS). If you, as a student, believe you are eligible for accommodations but have not obtained approval please contact DAS immediately at or at DAS notifies students and faculty members of approved academic accommodations and coordinates implementation of those accommodations. While not required, students and faculty members are encouraged to discuss details of the implementation of individual accommodations. Diversity Statement: The College of Health and Human Sciences strives to create an affirming climate for all students including underrepresented and marginalized individuals and groups. Diversity encompasses differences in age, color, ethnicity, national origin, gender, physical or mental ability, religion, socioeconomic background, veteran status, sexual orientation, and marginalized groups. We believe diversity is the synergy, connection, acceptance, and mutual learning fostered by the interaction of different human characteristics. Religious Holidays: Oregon State University strives to respect all religious practices. If you have religious holidays that are in conflict with any of the requirements of this class, please see me immediately so that we can make alternative arrangements. Course Schedule: Introductory and Review Material April 4: Introduction Pindyck and Rubinfeld, Ch. 1 April 6: Supply, Demand and Elasticities Pindyck and Rubinfeld, Ch. 2 April 11: Consumer/Producer Surplus, and Effects of Government Policies Pindyck and Rubinfeld, Ch. 2 (continued) April 13: Analysis of Competitive Markets Pindyck and Rubinfeld, Ch. 9 (continued) Problem Set 1 Due 3
4 Consumer Decisions and Demand Theory April 18: Budget Constraints and Indifference Curves Pindyck and Rubinfeld, Ch. 3 April 20: Utility Maximization and Income Changes Pindyck and Rubinfeld, Ch. 3 (continued) April 25: Individual and Market Demand Pindyck and Rubinfeld, Ch. 4 Problem Set 2 Due April 27: Individual and Market Demand Pindyck and Rubinfeld, Ch. 4 (continued) May 2: Review for Midterm Exam 1 (Students prepare questions to guide review.) Problem Set 3 Due May 4: MID-TERM EXAM 1 Production and Cost Theory May 9: Production and Costs of Production Pindyck and Rubinfeld, Ch. 6 May 11: Production and Costs of Production Pindyck and Rubinfeld, Ch. 6 (continued) May 16: Profit Maximization and Competitive Supply Pindyck and Rubinfeld, Ch. 8 May 18: Profit Maximization and Competitive Supply Pindyck and Rubinfeld, Ch. 8 (continued) Problem Set 4 Due Market Structures May 23: Monopoly Power Pindyck and Rubinfeld, Ch May 25: Pricing with Market Power Pindyck and Rubinfeld, Ch May 30: Review for Midterm Exam 2 (Students prepare questions to guide review.) Problem Set 5 Due 4
5 June 1: MID-TERM EXAM 2 June 6: Markets for Factor Inputs and Monopsony Pindyck and Rubinfeld, Ch. 14, Ch Information, Market Failure, and the Role of Government June 8: Problems of Asymmetric Information, Externalities, and Public Goods Pindyck and Rubinfeld, Ch Problem Set 6 Due FINAL EXAM: Wednesday, June 14 at 12:00pm (noon) 5
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