Published Jul 25, 2022
This course studies models of economic decision making. Topics include: choice under uncertainty, consumer and producer theory and game theory.
In this course, we will cover the fundamental models of economic decision making. We will begin by examining the concepts of preference and choice, building to the familiar concept of utility maximization. From there we then examine the theory of choice under uncertainty and the concept of expected utility. Finally, we examine choice in strategic environments and game theory.
| fully fluent with the economic theory of decision making. This theory informs everything that we do in economics, including providing the basis upon which all empirical work is founded. |
Weeks 1 and 2: Preferences and Choice
Weeks 3 and 4: Preferences and Utility
Weeks 5 to 6: Decision Making Under Uncertainty
Week 7: Review and Midterm Exam
Week 8: Decision Making Under Uncertainty Conclusion
Weeks 9 to 12: Game Theory
| Title / Name | Notes / Comments | Required |
|---|---|---|
| Mas-Colell, A. Whinston, M.D. and Green, J.R., Microeconomic Theory, Oxford University Press, 1995. | This book is required for PhD students and optional for MA students. | Yes |
Note that this book is available through the UW online store as an e-book. Here is the link.
| Component | Value |
|---|---|
| 4 Assignments | 10% |
| Midterm Exam (Oct 26th in class) | 40% |
| Final Exam (cumulative, date TBD) | 50% |
Assignments
For your assignments, you will be asked to solve mathematical problems based on the material covered. The marking scheme will be as follows. Each question (or subquestion) is worth 1 mark. If you get the answer correct, you get 1 mark. If you get the answer incorrect, you get 0.5 marks. If you do not attempt the question, you get 0 marks. Working in groups is expected (and indeed recommended), although each student must hand in their own assignment, written in their own words.
Late Work
Assignments are due in class by the due date given. Late assignments submitted less than 24 hours after the deadline will be given a 25% penalty. Assignments submitted more than 24 hours late will not be marked.
No make-up tests will be provided for the midterm exam. Students who do not have a relevant medical certificate or other documentation will receive a mark of zero. Students with a valid documented reason for missing the exam will have the weight of the midterm added to their final.
No assignment screening will be used in this course.
All of us need a support system. The faculty and staff in Arts encourage students to seek out mental health support if they are needed.
On Campus
Due to COVID-19 and campus closures, services are available only online or by phone.
Off campus, 24/7
Full details can be found online on the Faculty of Arts website
Download UWaterloo and regional mental health resources (PDF)
Download the WatSafe app to your phone to quickly access mental health support information.
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For more information about the purpose of territorial acknowledgements, please see the CAUT Guide to Acknowledging Traditional Territory.
Academic integrity: In order to maintain a culture of academic integrity, members of the University of Waterloo community are expected to promote honesty, trust, fairness, respect and responsibility. [Check the Office of Academic Integrity for more information.]
Grievance: A student who believes that a decision affecting some aspect of their university life has been unfair or unreasonable may have grounds for initiating a grievance. Read Policy 70, Student Petitions and Grievances, Section 4. When in doubt, please be certain to contact the department’s administrative assistant who will provide further assistance.
Discipline: A student is expected to know what constitutes academic integrity to avoid committing an academic offence, and to take responsibility for their actions. [Check the Office of Academic Integrity for more information.] A student who is unsure whether an action constitutes an offence, or who needs help in learning how to avoid offences (e.g., plagiarism, cheating) or about “rules” for group work/collaboration should seek guidance from the course instructor, academic advisor, or the undergraduate associate dean. For information on categories of offences and types of penalties, students should refer to Policy 71, Student Discipline. For typical penalties, check Guidelines for the Assessment of Penalties.
Appeals: A decision made or penalty imposed under Policy 70, Student Petitions and Grievances (other than a petition) or Policy 71, Student Discipline may be appealed if there is a ground. A student who believes they have a ground for an appeal should refer to Policy 72, Student Appeals.
Note for students with disabilities: AccessAbility Services, located in Needles Hall, Room 1401, collaborates with all academic departments to arrange appropriate accommodations for students with disabilities without compromising the academic integrity of the curriculum. If you require academic accommodations to lessen the impact of your disability, please register with AccessAbility Services at the beginning of each academic term.
Turnitin.com: Text matching software (Turnitin®) may be used to screen assignments in this course. Turnitin® is used to verify that all materials and sources in assignments are documented. Students' submissions are stored on a U.S. server, therefore students must be given an alternative (e.g., scaffolded assignment or annotated bibliography), if they are concerned about their privacy and/or security. Students will be given due notice, in the first week of the term and/or at the time assignment details are provided, about arrangements and alternatives for the use of Turnitin in this course.
It is the responsibility of the student to notify the instructor if they, in the first week of term or at the time assignment details are provided, wish to submit alternate assignment.