Applied Microeconomics - ECO00096M

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Module summary

This module covers fundamental topics in microeconomic theory, providing students with a comprehensive understanding of microeconomic concepts, and some applications to real world contexts.

Module will run

Occurrence	Teaching period
A	Semester 1 2025-26

Module aims

This module is designed to equip students with analytical skills and knowledge to understand the microeconomic behaviour of consumers, firms, organisations, and markets; make informed decisions; and analyse economic problems and propose solutions using microeconomic principles.

Module learning outcomes

• Apply microeconomic theory: understand and apply microeconomic concepts to the analysis and solution of economic problems from a microeconomic perspective, and identify key elements in the design and proposal of economic policy and strategies at a microeconomic level.

• Understand and analyse consumer and firm behaviour, and the market: understand consumer and firm behaviour from the perspective of an economist, analyse consumer’s decision and choice processes, understand the firms’ cost structure, production decisions, pricing policies, and competition strategies. Analyse market outcomes, including implications for efficiency and welfare.

• Understand and analyse economic aspects of information and market design: understand the role of information in economic decision making and economic outcomes under asymmetric information. Analyse and identify key aspects of matching markets, auctions, and platforms.

Module content

Part I.

1. Consumer theory

2. Producer theory

3. Market structures

Part II.

1. Game theory

2. Economics of information

3. Market design

Indicative assessment

Task	% of module mark
Essay/coursework	25
Online Exam -less than 24hrs (Centrally scheduled)	75

Special assessment rules

None

Indicative reassessment

Task	% of module mark
Online Exam -less than 24hrs (Centrally scheduled)	75

Module feedback

Feedback will be provided in line with University policy

Indicative reading

The main textbooks for part I of this module are

Varian, H. R., & Varian, H. R. (1992). Microeconomic analysis (Vol. 3). New York: Norton. (Part I will follow this book closely)

Perloff, J. M. (2021). Microeconomics: theory and applications with calculus / Jeffrey Perloff. (Fifth edition.; Global edition.). Harlow, England: Pearson. (This is a good introduction to the topics covered in this course)

The main textbooks for part II of this module are

Martin J. Osborne and Ariel Rubinstein, Models in Microeconomic Theory (Expanded Second Edition), Cambridge, UK: Open Book Publishers, 2023. (Part III of the book for game theory and Part IV for market design)

Osborne, M. J. (2004). An introduction to game theory / Martin J. Osborne. Oxford: Oxford University Press. (An introduction to the study of game theory)

Tadelis, S. (2013). Game theory: an introduction. Princeton university press. (Another introduction to game theory)

Campbell, D. E. (2018). Incentives: motivation and the economics of information / Donald E. Campbell, College of William and Mary, VA. (Third edition.). Cambridge: Cambridge University Press. (Chapters 3 and 5 for economics of information, chapters 6 and 9 for market design)

Salanie´, B. (1997). The economics of contracts: a primer / Bernard Salanié. Cambridge, Mass.; London: MIT Press. (Reference book for further reading on information economics)

Haeringer, G. (2018). Market design: auctions and matching. MIT Press. (A book covering many aspects of market design at an introductory level)