The aim of this course is to give students the conceptual basis and the necessary tools for understanding modern microeconomics at an intermediate level. This course makes extensive use of calculus.
The course covers six broad areas:
The theory of the firm
General equilibrium and welfare
The theory of the consumer explores the demand side, while the theory of the firm discusses the supply side of the economy. General equilibrium puts the two parts together and discusses welfare implications, including in the presence of externalities.
The second part of the course introduces basic concepts in non-cooperative game theory, emphasising the strategic aspect of economic interaction. Game theory is then applied to analyse informational problems in economics, in particular problems of hidden information (adverse selection) and hidden action (moral hazard).
As a working knowledge of differential calculus is essential for the study of quantitative solutions to economic problem, it is a pre-requisite for the course. In class on the first day of the course, partial differential calculus will be reviewed and students will be introduced to the techniques of constrained maximization, such as Lagrangian procedures, used throughout.
World-class LSE teaching
The LSE Department of Economics is one of the biggest and best in the world, with expertise across the full spectrum of mainstream economics. A long-standing commitment to remaining at the cutting edge of developments in the field has ensured the lasting impact of its work on the discipline as a whole.
It is a leading research department, consistently ranked in the top 20 economics departments worldwide. This is reflected in the 2014 Research Assessment exercise which recognised the Department's outstanding contribution to the field
On this three week intensive programme, you will engage with and learn from full-time lecturers from the LSE’s economics faculty.
Snyder, Christopher and Walter Nicholson. Microeconomic Theory: Basic Principles and Extensions, (11th edition, International Edition), South-Western College Publishing (2011). Please note that the textbook differs from previous editions as well as the American edition.
*A more detailed reading list will be supplied prior to the start of the programme
**Course content, faculty and dates may be subject to change without prior notice