Maxwell B Stinchcombe
Professor — Ph.D., University of California, Berkeley
Contact
 Email: max.stinchcombe@gmail.com
 Phone: 5124758515
 Office: BRB 2.102A  On Leave 201415
 Office Hours: T/Th 9:00  11:00am
 Campus Mail Code: C3100
Courses
ECO 351M • Managerial Economics
34115 • Fall 2016
Meets MW 9:30AM11:00AM BRB 1.118
PREREQUISITE: ECO 420K, AND ECO 329 OR M 362K, WITH A GRADE OF AT LEAST C IN EACH.
The course is about the strategies that firms can use to gain an advantage in markets that are very competitive (such as product/service differentiation, pricing strategies, corporate reorganization, mergers/acquisitions, etc.) Preston McAfee's book mixes theory about the kinds of competitive strategies that are available with examples of how they have been (or are being) used. The case studies provide real world discussions of corporate efforts to apply particular strategies. The case study writeups give students a chance to focus on how the strategies work in actual practice. The course organization is based on the 'case study method' used in the Harvard Business School. It gives students practical experience in 1) reading and interpreting real world competitive analysis, 2) meeting recurring writing deadlines, 3)presenting material to an informed audience, 4) participating in group projects where their grade depends partly on the work of others, 5) thinking about what an economist can contribute to corporate strategizing. Students seem to enjoy the class, the participation in the presentations is enthusiastic. Also, I've received email from some students of last spring's class saying their use of ideas from the class had made a difference in their job interviews.
ECO 351M • Managerial Economics
33386 • Fall 2015
Meets MW 11:00AM12:30PM BRB 1.120
PREREQUISITE: ECO 420K, AND ECO 329 OR M 362K, WITH A GRADE OF AT LEAST C IN EACH.
The course is about the strategies that firms can use to gain an advantage in markets that are very competitive (such as product/service differentiation, pricing strategies, corporate reorganization, mergers/acquisitions, etc.) Preston McAfee's book mixes theory about the kinds of competitive strategies that are available with examples of how they have been (or are being) used. The case studies provide real world discussions of corporate efforts to apply particular strategies. The case study writeups give students a chance to focus on how the strategies work in actual practice. The course organization is based on the 'case study method' used in the Harvard Business School. It gives students practical experience in 1) reading and interpreting real world competitive analysis, 2) meeting recurring writing deadlines, 3)presenting material to an informed audience, 4) participating in group projects where their grade depends partly on the work of others, 5) thinking about what an economist can contribute to corporate strategizing. Students seem to enjoy the class, the participation in the presentations is enthusiastic. Also, I've received email from some students of last spring's class saying their use of ideas from the class had made a difference in their job interviews.
ECO 351M • Intro To Managerial Economics
33387 • Fall 2015
Meets MW 9:30AM11:00AM WAG 214
PREREQUISITE: ECO 420K, AND ECO 329 OR M 362K, WITH A GRADE OF AT LEAST C IN EACH.
The course is about the strategies that firms can use to gain an advantage in markets that are very competitive (such as product/service differentiation, pricing strategies, corporate reorganization, mergers/acquisitions, etc.) Preston McAfee's book mixes theory about the kinds of competitive strategies that are available with examples of how they have been (or are being) used. The case studies provide real world discussions of corporate efforts to apply particular strategies. The case study writeups give students a chance to focus on how the strategies work in actual practice. The course organization is based on the 'case study method' used in the Harvard Business School. It gives students practical experience in 1) reading and interpreting real world competitive analysis, 2) meeting recurring writing deadlines, 3)presenting material to an informed audience, 4) participating in group projects where their grade depends partly on the work of others, 5) thinking about what an economist can contribute to corporate strategizing. Students seem to enjoy the class, the participation in the presentations is enthusiastic. Also, I've received email from some students of last spring's class saying their use of ideas from the class had made a difference in their job interviews.
ECO 359M • Envir And Natural Resource Eco
33500 • Fall 2010
Meets TTH 12:30PM2:00PM WEL 2.308
OPTIMAL USE OF EXHAUSTIBLE AND RENEWABLE RESOURCES; VALUATION OF NONMARK ETED ENVIR AMENITIES; ECON OF POLLUTION CONTROL INSTRUMENTS; ENVIR QUALI TY AND INTNATL TRADE; ECON OF GLOBAL CLIMATE CHANGE; POLLUTION CONTROL.
PREREQUISITE: ECO 420K AND 329 WITH A GRADE OF AT LEAST C IN EACH.
This course will study the economics of public policy toward natural resources and the environment. It is designed primarily for advanced undergraduates in economics. Prerequisites include microeconomics and calculus. We will start with the concepts of externalities, public goods, property rights, market failure, and social costbenefit analysis. Within this framework, we will consider a few additional problems such as information, uncertainty, and risk analysis. The first set of applications of these tools will involve natural resources. Other applications include air pollution, water pollution, solid waste management, and hazardous substances. In addressing each of these problems, we will compare public policy responses such as administrative regulation, marketable permits, tax incentives, and direct subsidies.
ECO 362M • Mathematics For Economists
33720 • Spring 2010
Meets TTH 12:30PM2:00PM UTC 3.122
SYLLABUS FOR MATHEMATICS FOR ECONOMISTS
ECONOMICS 362M, SPRING 2010
MAXWELL B. STINCHCOMBE
Organization
Basics: We meet Tuesdays and Thursdays, from 12:30 p.m. to 2:00 p.m. in UTC
3.122. The unique number is 33720.
Reaching me: My office is BRB 2.118, phone number (512)4758515, my email
address is max.stinchcombe@gmail.com.
Office Hours: Tuesdays and Thursdays, 2:003:00 p.m. and Mondays and Wednesdays, 1111:45 a.m., though the graduate students have priority at that time. You can also dropin, and/or make an appointment.
Teaching Assistant: We are lucky to have Mohammad Dehghani as the T.A. for this course. His office hours are Mondays and Fridays, 23:30 p.m. His email is
mhdehghani@gmail.com, his phone is 5127679625, and his office is BRB 2.146.
Texts: The required textbook for this class is An Introduction to Mathematical
Analysis for Economic Theory and Econometrics by D. Corbae, M. Stinchcombe, and
J. Zeeman. I strongly advise you to read the material once before we cover it in lecture and once afterward.
Evaluation: There will be weekly homework assignments (40%), consisting of about
8 problems of varying difficulties, two midterms, Thursday February 25, 2010 (10%)
and Thursday March 25, 2010 (10%), and annual exam, Saturday May 15, 2010,
9a.m.  12 p.m. (40%).
In more detail:
(1) The homework assignments are due every Tuesday beginning January 26, unless this falls during spring break (March 1520), in which case the assignment is due the following Tuesday.
(a) I expect you to get almost all of the homework problems correct. This is because you will have two chances at them. From the time I hand an assignment back to you, you have two weeks to correct any errors on the homework problems. I am very happy to talk about any difficulties you have with the assignments.
(b) I strongly encourage you to work together on assignments, and to talk to me about any and all parts of the assignments. However, I strongly discourage you from merely copying someone else's work. If you \free ride" on others' efforts, it is likely that you will not understand what is being taught sufficiently well to pass the class.
(2) The two midterms will each count for 10% of your grade, and they will likely include both an inclass and a homeworklike component. They will be given on Thursday February 25 and Thursday March 25. I do not give makeup exams. If you must miss the midterm on University business, make arrangements with me in advance.
(3) The final, cumulative exam will be given on Saturday May 15, 2010, from 9a.m. till 12 p.m. It will count for the remaining 40% of your grade.
Background: I will assume that you have had a good introduction to microeconomics, especially the utility maximization foundation of the theory of consumer choice and the theory of the firm, and that you have a good working knowledge of partial derivatives and differential calculus.
Topics: The course is in introduction to the basics mathematics that is used in essentially all advanced economic analysis. Though it may feel that the tools are central to your experience of this course, it is their usefulness that motivates me to teach this course, and I hope you come to appreciate these as well. We will see these tools used for
(1) Rational choice theory, which is the basic model of human motivation that economists use.
(2) Monotone comparative statics, which examines how optima move as circumstances change.
(3) One factor growth models, which are the basic dynamic models for resource economics and macroeconomics.
(4) Duality theory, which ties together the different approaches to consumer demand theory and to the behavior of pricetaking firms.
(5) Constrained optimization theory and the KareshKuhnTucker Theorem, which is the basic tool for analyzing the mathematical model of human behavior that economists use.
Schedule:
The intended schedule is given below. If needed, we will adjust it.
Week 
Dates 
Chapters

1 2 3 4 4 5 
Jan 19, 21 Jan 26, 28 Feb 2, 4 Feb 9, 11 Feb 16, 18 Feb 23, 25 
Ch. 1, 2.1 – 4 Ch. 2.5 Ch. 2.6  7 Ch. 2.8 Ch. 2.10, 3.1  2 Ch. 3.3, Midterm

6 7  8 
Mar 2, 5 Mar 9, 11 Spring break Mar 23, 25 
Ch.3.3  4 Ch. 3.4  7  Ch. 4.1  2, Midterm

9 10 11 12 13 14 
Mar 30, Apr 1 Apr 6, 8 Apr 13, 15 Apr 20, 22 Apr 27, 29 May 4, 6 
Ch. 4.2 3, 5.1  2 Ch. 5.3  4, 4.4 Ch. 4.5  7 Ch. 4.8, 5.5  6 Ch. 5.7  8 Ch. 5.8  9 
ECO 387L • Adv Microeconomic Analysis
33980 • Fall 2009
Meets MW 2:00PM3:30PM BRB 1.120
A COURSE ON INFINITE GAMES
MAXWELL B. STINCHCOMBE
Contents
1. Introduction 3
1.1. Organization 3
1.2. Background 3
1.3. Outline of Topics 3
1.3.1. Finite Games and The Equilibrium Correspondences 4
1.3.2. Compact and Continuous Games 4
1.3.3. In nitely Repeated Games 4
1.3.4. Discontinuous Normal Form Games 4
1.3.5. In nite Extensive Form Games 4
2. Finite Normal Form Games 6
2.1. Interpretation and Equilibria 6
2.2. Properties of the Equilibrium Correspondence 7
3. Ideal Points and In nitesimals 9
3.1. Adding In nitesimals to R 9
3.2. Constructing R 10
3.3. In nitesimals and Standard Parts 11
3.4. Continuity via In nitesimals 13
3.5. Compactness via the Standard Part Mapping 14
3.6. The Space of Compact Sets 15
3.7. Monads 16
3.8. Continuity of Correspondences 17
3.9. Appendix 19
3.9.1. Internal Sets 19
3.9.2. Star Finite Maximization 21
3.9.3. Perfection and Properness 22
3.9.4. The Closed Limsup and Liminf 23
4. The Equilibrium Correspondences for Finite Games 24
Date: Fall 2009.
1
2 MAXWELL B. STINCHCOMBE
5. Compact and Continuous Games 27
5.1. Equilibrium Existence 27
5.2. Perfection and Properness 27
5.3. Nearly Compact and Continuous Games 27
5.4. Extensive Form Games 27
5.4.1. In nitely Repetitions of Finite Stage Games 27
6. Compact and Discontinuous Games 28
6.1. Examples 28
6.2. Adding Ideal Points 28
6.3. Games in Which Ideal Points Are Not Needed 28
7. Extensive Form Games 29
References 30
A COURSE ON INFINITE GAMES 3
1. Introduction
The aim of this course is to take you from Nash's equilibrium exis
tence theorem for nite normal form games up to the limits of what is
known about equilibria in extensive form games in which pure action
spaces are in nite. Combined with a review the basic mathematics of
probabilities on wellbehaved metric spaces and nets of nite approx
imations, the rst half of the course will cover in nite normal form
games. Building on the material in the rst half, the second half of the
course will cover in nite extensive form games.
1.1. Organization. Meeting: We will meet Mondays and Wednes
days, 2 to 3:30 p.m. in BRB 1.120. We will also have a weekly problem
session meeting at a time accomodating the largest number of people.
Workload: Throughout this set of notes are live links to the papers
we will be discussing. Lectures will be far more informative if you look
at the articles before class meetings.
For each of the topics there will be a homework that you will have
unlimited chances to hand in completely correct. A crucial skill that I
want you to develop is knowing when you have given a correct proof.
To ease this, we will have a weekly problem session meeting. If you skip
the problem session, I expect it to be because you have no problems
with the material.
Over the course of the semester, we will look at a number of re
sults with applications to problems you care about. We will also see
a number of open theory problems. You should take this class as an
opportunity to work on these problems in paper form.
1.2. Background. As to economics, I expect you to have taken the
graduate introductory in microeconomics sequence and an introductory
course in game theory. As to mathematical tools, I expect you to have
had or to be willing to pick up basic real analysis at the level of a
good undergraduate course, e.g. the material in Chapter 4 in Corbae,
Stinchcombe, and Zeeman [3]. As we need it, we will cover parts of the
material on metric spaces, [3, Ch. 6], probabilities on metric spaces [3,
Ch. 9], and ideal points representing sequences [3, Ch. 11].
1.3. Outline of Topics.
4 MAXWELL B. STINCHCOMBE
1.3.1. Finite Games and The Equilibrium Correspondences. For the
rst two weeks, we will cover the basic properties of the equilibrium and
approximate equilibrium correspondences for nite games, introducing
ideal points representing sequences for the proofs. The material on
upper hemicontinuous and continuous correspondences in [3, Ch. 6]
will appear, as well as the rst section of [3, Ch. 11]. We will also, for
the rst time, see Fudenberg and Levine's [4] \most utility di
erence
it can make to anyone" metric on strategies.
1.3.2. Compact and Continuous Games. The subsequent two weeks
will be spent on ideal point representations of sequences of nite ap
proximations to games with compact spaces of actions and jointly
continuous utility functions. The nite approximation approach to
equilibrium existence is in Glicksberg [5]. We will also look at the 
nite approximation approach to equilibrium re nement in Simon and
Stinchcombe [10], and Harris, Stinchcombe and Zame's [6] study of the
largest classes of games for which the compact and continuous approach
'works.'
1.3.3. In nitely Repeated Games. The most heavily studied class of
compact and continuous games are the in nitely repeated nite games.
Recent work has concentrated on games of incomplete monitoring. We
will look at two sets of results on the recursive structures in these
games, Abreu, Pearce and Stacchetti [1] and Amarante [2].
1.3.4. Discontinuous Normal Form Games. When compact normal form
games have discontinuous payo
s, there are two approaches. The rst
is to nd conditions on the games implying that equilibria still exist.
The second is to expand the notion of equilibrium by allowing correla
tion devices of various kinds.
Within the rst approach, we will study Reny's [9] uni cation and
generalization of a long and dicult literature.
Within the second approach, the basic approach is in Simon and
Zame's [11] sharing rule equilibria. With the bene t of hindsight, their
sharing rule equilibria are not equilibria, and often not easily inter
pretable, so we will work from Stinchcombe's [12] version of their idea.
1.3.5. In nite Extensive Form Games. The addition of correlation de
vices predated the study of its use in normal form games. The rst
breakthrough came in the study of signaling games, in which we have
A COURSE ON INFINITE GAMES 5
Manelli's work on the introduction of cheap talk. We will then turn to
the general study of extensive form games and the addition of commu
nication as in Jackson et. al. [7], and in auctions Jackson and Swinkels
[8].
6 MAXWELL B. STINCHCOMBE
2. Finite Normal Form Games
A game is a collection
ECO 354K • Introductory Game Theory
33190 • Spring 2009
Meets TTH 3:30PM5:00PM UTC 3.102
INTRODUCTION TO THE FORMAL STUDY OF INTERDEPENDENT DECISION MAKING. APPLICATIONS OF GAME THEORY INCLUDE PRICING AND ADVERTISING STRATEGIES, LABORMANAGEMENT BARGAINING, AND TARIFF NEGOTIATIONS.
PREREQUISITE: ECONOMICS 420K AND 329 WITH A GRADE OF AT LEAST C IN EACH.
Contact professor for more information.
ECO 362M • Mathematics For Economists
33220 • Spring 2009
Meets TTH 12:30PM2:00PM UTC 3.122
Prerequisistes: Eco 420k with at least a C or better and M408D with at least a C or better.
The course is in introduction to the basics mathematics that is used in essentially all advanced economic analysis. Though it may feel that the tools are central to your experience of this course, it is their usefulness that motivates me to teach this course, and I hope you come to appreciate these as well. We will see these tools used for:
(1) Rational choice theory, which is the basic model of human motivation that economists use.
(2) Monotone comparative statics, which examines how optima move as circumstances change.
(3) One factor growth models, which are the basic dynamic models for resource economics and macroeconomics.
(4) Duality theory, which ties together the different approaches to consumer demand theory and to the behavior of pricetaking firms.
(5) Constrained optimization theory and the KareshKuhnTucker Theorem, which is the basic tool for analyzing the mathematical model of human behavior that economists use.
ECO 354K • Introductory Game TheoryHon
34495 • Fall 2007
Meets T 5:00PM8:00PM BRB 2.136
INTRODUCTION TO THE FORMAL STUDY OF INTERDEPENDENT DECISION MAKING. APPLICATIONS OF GAME THEORY INCLUDE PRICING AND ADVERTISING STRATEGIES, LABORMANAGEMENT BARGAINING, AND TARIFF NEGOTIATIONS.
PREREQUISITE: ECONOMICS 420K AND 329 WITH A GRADE OF AT LEAST C IN EACH.
Contact professor for more information.
ECO 354K • Introductory Game Theory
32335 • Spring 2006
Meets TTH 2:00PM3:30PM BRB 2.136
INTRODUCTION TO THE FORMAL STUDY OF INTERDEPENDENT DECISION MAKING. APPLICATIONS OF GAME THEORY INCLUDE PRICING AND ADVERTISING STRATEGIES, LABORMANAGEMENT BARGAINING, AND TARIFF NEGOTIATIONS.
PREREQUISITE: ECONOMICS 420K AND 329 WITH A GRADE OF AT LEAST C IN EACH.
Contact professor for more information.
ECO 354K • Introductory Game Theory
29245 • Spring 2003
Meets MW 9:30AM11:00AM BRB 2.136
INTRODUCTION TO THE FORMAL STUDY OF INTERDEPENDENT DECISION MAKING. APPLICATIONS OF GAME THEORY INCLUDE PRICING AND ADVERTISING STRATEGIES, LABORMANAGEMENT BARGAINING, AND TARIFF NEGOTIATIONS.
PREREQUISITE: ECONOMICS 420K AND 329 WITH A GRADE OF AT LEAST C IN EACH.
Contact professor for more information.
ECO 329 • Economic StatisticsHonors
29600 • Fall 2002
Meets TTH 12:30PM2:00PM BRB 1.102
METHODS OF STATISTICAL ANALYSIS AND INTERPRETATION OF QUANTITATIVE DATA IN THE FIELD OF ECONOMICS. REQUIRED OF ECONOMICS MAJORS.
PREREQUISITE: ECONOMICS 304K AND 304L WITH A GRADE OF AT LEAST C IN EACH, AND MATHEMATICS 408C AND 408D, OR MATHEMATICS 408K AND 408L, WITH A GRADE OF AT LEAST C IN EACH.
Economics 329 is an introduction to Economic Statistics. The aim of the course is to familiarize students with methods of summarizing collections of measurements (data sets) of economic, political and business phenomena. Of particular concern will be an introduction to elementary probability theory and its use in the interpretation of summary statistics (inference) obtained from statistical data sets. A number of economic, political and business applications will be used to illustrate the methods. If more information is needed contact instructor.
ECO 329 • Economic Statistics
29240 • Spring 2002
Meets MW 9:30AM11:00AM UTC 3.122
METHODS OF STATISTICAL ANALYSIS AND INTERPRETATION OF QUANTITATIVE DATA IN THE FIELD OF ECONOMICS. REQUIRED OF ECONOMICS MAJORS.
PREREQUISITE: ECONOMICS 304K AND 304L WITH A GRADE OF AT LEAST C IN EACH, AND MATHEMATICS 408C AND 408D, OR MATHEMATICS 408K AND 408L, WITH A GRADE OF AT LEAST C IN EACH.
Economics 329 is an introduction to Economic Statistics. The aim of the course is to familiarize students with methods of summarizing collections of measurements (data sets) of economic, political and business phenomena. Of particular concern will be an introduction to elementary probability theory and its use in the interpretation of summary statistics (inference) obtained from statistical data sets. A number of economic, political and business applications will be used to illustrate the methods. If more information is needed contact instructor.
ECO 351M • Managerial Economics
29055 • Spring 2000
Meets MWF 8:00AM9:00AM UTC 1.146
PREREQUISITE: ECO 420K, AND ECO 329 OR M 362K, WITH A GRADE OF AT LEAST C IN EACH.
The course is about the strategies that firms can use to gain an advantage in markets that are very competitive (such as product/service differentiation, pricing strategies, corporate reorganization, mergers/acquisitions, etc.) Preston McAfee's book mixes theory about the kinds of competitive strategies that are available with examples of how they have been (or are being) used. The case studies provide real world discussions of corporate efforts to apply particular strategies. The case study writeups give students a chance to focus on how the strategies work in actual practice. The course organization is based on the 'case study method' used in the Harvard Business School. It gives students practical experience in 1) reading and interpreting real world competitive analysis, 2) meeting recurring writing deadlines, 3)presenting material to an informed audience, 4) participating in group projects where their grade depends partly on the work of others, 5) thinking about what an economist can contribute to corporate strategizing. Students seem to enjoy the class, the participation in the presentations is enthusiastic. Also, I've received email from some students of last spring's class saying their use of ideas from the class had made a difference in their job interviews.
ECO 354K • Introductory Game Theory
29060 • Spring 2000
Meets MWF 10:00AM11:00AM UTC 1.146
INTRODUCTION TO THE FORMAL STUDY OF INTERDEPENDENT DECISION MAKING. APPLICATIONS OF GAME THEORY INCLUDE PRICING AND ADVERTISING STRATEGIES, LABORMANAGEMENT BARGAINING, AND TARIFF NEGOTIATIONS.
PREREQUISITE: ECONOMICS 420K AND 329 WITH A GRADE OF AT LEAST C IN EACH.
Contact professor for more information.
 Faculty & Research
 Ph.D. Program
 Master’s Program
 Undergraduate Program
 Courses in Economics
 News
 Seminars & Events
 Alumni & Giving
 Resources
 Map
Department of Economics
The University of Texas at Austin
2225 Speedway
BRB 1.116, C3100
Austin, Texas 78712
5124713211 (main) & 5124712973 (advising)

Students
 Prospective
 Undergraduate
 Graduate
The College of Liberal Arts
The University of Texas at Austin
116 Inner Campus Dr Stop G6000
Austin, TX 78712
General Inquiries:
5124714141
Student Inquiries:
5124714271

Departments

Centers

Institutes

Programs

Initiatives

Administration
 Office of the Dean
 Academic Affairs
 Research & Graduate Studies
 Student Affairs
 Business Affairs
 Human Resources
 Alumni & Giving
 Public Affairs
 LAITS: IT & Facilities
 The University of Texas at Austin
116 Inner Campus Dr Stop G6000
Austin, TX 78712  General Inquiries:
5124714141
Student Inquiries:
5124714271
Web Privacy Policy
Web Accessibility Policy
© Copyright TEXT