Economics: Advanced Microeconomic Analysis

You start by looking at individual decision making, with applications ranging from isolated choices by consumers to policy evaluation of price changes (for instance due to tax changes). Using the theory of economic decision-making under risk and uncertainty, you apply consumer choice to key areas of the economy such as finance and insurance.

You move on to the closely related theory of production and develop it to the point of monopoly when there are increasing returns and significant fixed costs. You then use the monopoly framework to study common pricing strategies (price discrimination), such as charging different prices to different groups of consumers and offering product bundles to let consumers choose what suits them best.

You study strategic interaction between individuals and firms by introducing game theory. This includes situations where choices are made simultaneously or in sequence, and cases where information is incomplete. Examples include competition between firms and behaviour in markets with incomplete information.

Finally, you examine incentive problems that arise when actors hold asymmetric information, such as adverse selection and moral hazard. Examples include insurance markets and incentives within organisations.

Course literature

The course literature listed may be updated up to eight weeks before the course begins.

The course consists of lectures and tutorials. In the lectures, we present the material, buy you will also be engaged in interactive learning activities such as group discussion and short exercises. The tutorials are devoted to problem solving and aimed to prepare you for the homework assignments.

Assessment is based on a final written exam, a sequence of homework assignments and quizzes. 

Prerequisites

Students admitted to the Master programme in Economics and who have taken a course in intermediate microeconomic analysis are qualified for this course. For other students at least 90 ECTS-credits in economics at the undergraduate level are needed for admission to all master courses in economics. To be admitted to this particular course these credits must include a course in intermediate microeconomic analysis (e.g. NEKG21).

Selection criteria

Seats are allocated according to: ECTS (HPAV): 100 %.

Tuition fees for non-EU/EEA citizens

Citizens of countries outside:

• The European Union (EU)
• The European Economic Area (EEA) and
• Switzerland

are required to pay tuition fees. You pay an instalment of the tuition fee in advance of each
semester.

Tuition fees, payments and exemptions

Full programme/course tuition fee: SEK 18,750
First payment: SEK 18,750

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Note that you may also need to pay an application fee, or provide proof of exemption.

Application fee

No tuition fees for citizens of the EU, EEA and Switzerland

There are no tuition fees for citizens of the European Union (EU), the European Economic Area (EEA) and Switzerland.