Economics 101

by David K. Levine (August 01, 2000)

This is the first upper division microeconomics course for economics majors. It covers the basics tools required for upper division economics, and is relatively mathematical.

PREREQUISITES: You must have Economics 11 and Mathematics 31A, and 31B or 31E. We will make serious use of calculus. We will do differentiation, simple equation solving, and a limited amount of integration. It is crucial that you feel comfortable with these operations. If calculus is something you once knew but are now fuzzy on, you will find this course difficult.

TEXTS: We will use two textbooks.

H. R. Varian, Intermediate Microeconomics: A Modern Approach, 4th edition, Norton, ISBN 0-393-96842-1

H.S. Bierman and L. Fernandez, Game Theory with Economic Applications, Addison-Wesley, ISBN 0-201-56298.

LECTURES: You are responsible for all material covered in lecture as well as the required reading.

GRADING: You will be graded on four problem sets, a midterm exam and the final exam. Each problem set will count for 5% of your grade. The midterm exam will have three equally weighted questions, and counts 30% of your grade. It will be based directly on the problem sets. The midterm and problem sets are optional. The final exam is mandatory, and will cover the entire course, and have six equally weighted questions accounting for 50% of your grade. If you do better on the final than on either the midterm or the problem sets, it will replace the corresponding grade.

EXAMS: Dates of the exams, as well as due dates for the problem sets are given in the course schedule.. The midterm is given in class. Attendance at the final exam is mandatory; if you miss the midterm, the final will count in its place. If you do not think you can make the final exam, do not enroll in this class: you will either fail the class, or, with the approval of the academic dean, drop the class or withdraw from the quarter. There are no exceptions. I do not give incompletes, nor is it possible to make up a poor or non-existent exam grade by "doing an extra credit project."

REGRADING: If your exam score has been tallied incorrectly, we will gladly correct it. Otherwise, if you feel your exam has been graded unfairly, you should bring it to me (and not to the TA) and submit the entire exam for regrading. If errors in your favor are discovered, you may receive a lower grade. I have no interest in the possibility that a few more points on a particular question might net you a higher grade in the class, but I am concerned that you are graded fairly. Please do not ask us what the cutoff is for the next highest grade.

BLUEBOOKS: You must bring two large BLUEBOOKs to the midterm, and three to the final exam. Do not write your name in them: you will turn them in and they will be randomly distributed. Do all scratchwork in the bluebook. Do not remove pages or erase: simply put a line through errors or scratch work. You must use pen. Calculators are not allowed.

WORLD WIDE WEB: The slides used in class and all materials distributed in class will also be available on the world wide web. To use the material you will need access the the web and a web browser. If you do not currently have access to the web, you may go to one of the Social Science Computer Labs in Bunche 2149, 2155, Franz 2434, Haines 37, Powell 145, 307, 320, or 320B. Alternatively (and highly recommended) you can establish a Bruin Online account. To do this, you should purchase the Bruin Online client software from the ASUCLA Student Store. This will contain instructions on setting up and accessing a Bruin Online account. You may also establish an internet access account with any commercial internet provider.

Once you have established access to the world wide web, point your browser at Follow the directions there to access the course material. While using the material found on the web is not required, it is highly recommended. Because materials for the lectures are being provided (in advance) I will not have a notetaker for this course.

You are encouraged to submit questions to the TAs and myself by e-mail as an alternative to attending office hours.

Contact Information


fax: (310) 825-3810 or (310) 825-9528; phone: (310) 825-3810

administrative assistant: Chris Frank (310) 825-1011,

David Levine
8th Floor Bunche Hall
Department of Economics
Los Angeles, CA 90095 USA

Appointments are best arranged by email at

TA Information

Matteo Alvisi

Office: Bunche 9372

Office Hours: Monday 11AM - 1PM

E-Mail Address:

Web-Site: none yet

Sections: Tuesday (Dis 1A 11:00-11:50A Bunche 3143 , Dis 1B 12:00-12:50P Bunche 3153)


Elisa Mariscal

Office: Bunche 2256A

Office Hours: Tuesday 2PM-4PM

E-Mail Address:

Web-Site: none yet

Sections: Thursday: (Dis 1C 2:00- 2:50P Pub Pol 1256 , Dis 1D 3:00- 3:50P Pub Pol 1256 )


Enrique Flores

Office: Bunche 9294

Office Hours: Wednesday 11AM - 1PM

E-Mail Address:


Sections: TBA



Course Schedule

Week Date Lecture   Assignment Section reading in Varian reading in Bierman and Fernandez
1 Thu Sep 25 Monopoly review problems   23  
2 Tu Sep 30 Duopoly and the Prisoner's Dilemma   review answers 31 11.4, 11.5
  Thu Oct 2 Dominance and the Second Price Auction        
3 Tu Oct 7 Iterated Dominance in the Cournot Model       11.6, 13.1, 13.2, 13.3
  Thu Oct 9 Nash Equilibrium and Coordination Games PS#1   27 5.4, 11.7, 11.8
4 Tu Oct 14 Cournot, Bertrand   review PS#1 26 13.5, 13.6, 13.7
  Thu Oct 16 Subgame Perfect Equilibrium       5.1, 5.2
5 Tu Oct 21 Information Sets and the Normal Form       11.3
  Thu Oct 23 Stackelberg Equilibrium and Precommitment PS#2   26  
6 Tu Oct 28 Discounting   review PS#2 10  
  Thu Oct 30 Repeated Prisoner's Dilemma        
7 Tu Nov 4 MIDTERM EXAM         23
  Thu Nov 6 Repeated Prisoner's Dilemma   review midterm   23
8 Tu Nov 11 Long Run versus Short Run       23
  Thu Nov 13 Probability Theory, Conditional Probability and Bayes Law PS#3     2.4, 3.3, 3.5
9 Tu Nov 18 Expected Utility Theory   review PS#3   2.5, 2.6
  Thu Nov 20 Mixed Strategy Equilibrium       11.9
10 Tu Nov 25 Dynamic Programming PS#4     1
  Thu Nov 27 Thanksgiving Holiday          
11 Tu Dec 2 Types and Incomplete Information Cournot Competition   review PS#4   17
  Thu Dec 4 The Revelation Principle        
12 Thu Dec 11 FINAL EXAM: Thursday, 8:00A - 11:00A   review problems review answers    

Office Hours and Scheduling Information


Fall 1997 (Tue 9:30 AM - 10:45 AM Dodd 121/Geog 2221E) (Thu 9:30 AM - 10:45 AM Dodd 121/Geog 2221E)

Levine's Schedule:

Summer 2000
Fall 2000
 Economics 218
3:30 PM-5:00 PM Economics 219