- DepartmentDepartment of Economics
- Application codeSS-EC201
Applications are open
We are accepting applications. Apply early to avoid disappointment.
Microeconomics aims to understand the behaviour of individuals and firms to interpret how they make decisions given the scarcity of resources. This is especially important for individuals, both in business and government, who have to allocate resources considering a range of factors including labour, supply and demand, economic utility, pricing and productivity.
This course aims to give students the conceptual basis and the necessary tools for understanding modern microeconomics at an intermediate level. During the course you will learn about the application of consumer theory, the theory of the firm, general equilibrium and welfare, game theory, oligopolistic markets and information economics. By applying these theoretical frameworks you will tackle important questions such as how firms respond to market stimuli, both in the short and the long run, as well as how game theory can be used to study strategic interactions between decision makers.
This highly interactive course allows you to apply the content through active class discussion, class-based exercises, and feedback from faculty and peers. By the end of the course, you will understand how microeconomics is applied to real-world problems, helping you develop a microeconomic mindset when thinking about issues that are relevant in practice, and for policy.
Prerequisites: 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.
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)
Please note: 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
Is this course right for you?
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.
- 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
The design of this course is guided by LSE faculty, as well as industry experts, who will share their experience and in-depth knowledge with you throughout the course.
Dr Francesco Nava
Lecturer in Economics
Dr Andrew Ellis
Lecturer in Economics
The LSE 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 2022 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.
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