Level: 200 level. Read more information on levels in our FAQs

Fees:  Please see Fees and payments

Lectures: 36 hours 

Classes: 18 hours

Assessment*: Two written examinations

Typical credit*: 3-4 credits (US) 7.5 ECTS points (EU)

*Assessment is optional but may be required for credit by your home institution. Your home institution will be able to advise how you can meet their credit requirements.

For more information on exams and credit, read Teaching and assessment

Introductory microeconomics (to the equivalent of EC101) and differential calculus.

*Partial differential calculus will be reviewed on the first day and students will be introduced to the techniques of constrained maximisation, such as Lagrangian procedures, which will be used throughout this course.

• Consumer theory
• The theory of the firm
• General equilibrium and welfare
• Game theory
• Oligopolistic markets
• Information economics

This course is delivered as a series of lectures and classes where you will explore how microeconomic theory is applied in real-world settings.

The course is assessed through two examinations; a mid-session examination (50%) and a final examination (50%). You will also need to hand in problem sets for feedback during the course, which allow you to evaluate your understanding of the course content.

Further details will be provided at the beginning of the course.

• Analyse how individual demand functions can be aggregated to build the market demand curve
• Understand the structure of production and how this impacts profit maximisation problems of the firm
• Identify how equilibrium prices and quantities are determined and the conditions in which market equilibrium is efficient
• Use game theory to study strategic interactions between agents and its use as a tool in modern economics
• Analyse the optimal design of contracts to provide incentives and elicit information from different parties

This course is suitable if you already have a strong foundation in microeconomics and differential calculus. The course aims to deepen your understanding of modern microeconomics, providing you with the tools and frameworks to apply the theory to real-world problems. It is especially recommended if you wish  to develop a microeconomic mindset when thinking about issues that are relevant in practice and for policy development.

LSE’s Department of Economics is one of the largest and most prestigious in the world. It is the highest ranked faculty in Europe, according to the 2020 QS World University Rankings, with no fewer than 13 Nobel Prizes among current and former professors and alumni. The Department’s reputation is far-reaching, with research that has influenced responses to major global challenges, such as climate change, economic instability, development and growth, at a global level.

In our highly international faculty, students will learn from global thought-leaders and gain a thorough understanding of economic principles grounded in rigorous research. A long-standing commitment to remaining at the cutting-edge of developments in the field has ensured the lasting impact of the work of the Department on the discipline as a whole. This ensures that students are equipped with the necessary analytical skills to tackle the world’s most pressing problems.

Dr Francesco Nava
Lecturer in Economics, Department of Economics

Dr Andrew Ellis
Lecturer in Economics, Department of Economics

C. Snyder and W. 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