Econ 204B  Advanced Microeconomics II // Prof. Dan Friedman
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Solutions to the final exam are now posted...
Advanced Microeconomic Theory II, the second quarter of the Ph.D. microeconomics sequence, covers the fundamentals of information and decision theory, game theory and imperfect competition. There will be biweekly problem sets, an inclass midterm and an inclass final.
Students should own (or have regular access to) the principal text, Microeconomic Theory by MasColell, Whinston and Green (Oxford, 1995, ISBN=0195073401, denoted MWG below). They also should have at least occasional access to two secondary texts: The Analytics of Uncertainty and Information, by Hirshleifer and Riley (Cambridge University Press, 1992, denoted HR below) for information and decision theory, and Strategy: An Introduction to Game Theory, Second Edition by J. Watson (WW Norton, 2008, ISBN13=9780393929348 denoted W08 below) for game theory. It will be useful on occasion to consult the alternative texts: A Course in Microeconomic Theory by David M. Kreps (Princeton University Press, 1990) and Microeconomic Analysis, 3rd Edition, by Hal R. Varian (Norton, 1992). All these books will be on reserve in the Science Library.
Lecture notes and supplemental readings will be posted below. Each student is expected to help prepare the answer key to one problem set, which then will also be posted below.
The class meets Tu Th 8:00 – 9:35am in 169 JBE.
Section meets Wed 3:30  4:30pm in 499 Engineering 2.
Office hours are W 1:303:30pm in 417 Engineering 2, and by appointment.
Due Dates Final exam remotely administered 8am Thurs Nov 19.
DRC accommodations. UC Santa Cruz is committed to creating an academic environment that supports its diverse student body. If you are a student with a disability who requires accommodations to achieve equal access in this course, please submit your Accommodation Authorization Letter from the Disability Resource Center (DRC) to me privately during my office hours or by appointment, preferably within the first two weeks of the quarter.
Readings // All // akFinal // Final // ak4FinPPs // akps4 // ch 12 // ppFin20 // ch10 // // akps3a // Ch09 // PS4 // ch08 // ff97 // Ch07EvGs // mtAK20 // ps3 // Notes06 // mtppAK // MTcs20 // ps2AK // sosd // mtpp // ch05 // 10Treas // akps1 // neExist // Ch04 // krepsGs // ps2 // Ch03 // bss // ch02 // ch01 // ps1 // syl20 // RevPrin // duffy+feltovich // FO12 // RCs //

Proof that Nash Equilibrium exists in finite NFGs. // Posted on Jan. 27, 2020
Streamlined, selfcontained proof by Adam Brandenberger. Note that it works for many sorts of games that are not finite. Here is a challenge: find a game that has no NE even in mixed strategies. Easier: what can we say about the payoff function of such a game?
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