Microeconomics provides the principal modelling tools and frameworks that are used in all fields of economics. The corresponding techniques are built on models of decision-making by economic agents, in environments with and without uncertainty, and on the analysis of interacting economic agents, in various settings such as markets or strategic situations. This course introduces the main techniques of microeconomics, at a level that lies between that of typical undergraduate courses, and that of Masters or PhD level courses. The results are presented and analysed using both intuitive graphical and formal mathematical methods. An important aim of the course is to show that the intuition gained from simple graphical models, and the insight derived from formal theoretical analysis are complementary, and that only the interplay between economic intuition and abstract results can lead to a complete understanding of the respective models and the conclusions drawn from their analysis.

Upon successful completion of this course, students should be able to:

• Understand the main models of decision-making by economic agents, such as consumers or firms, in environments with and without uncertainty;

• Distinguish between market-based and strategic models of interacting economic agents, and use such models to analyse economic problems;

• Be able to analyse economic models using both intuitive graphical and formal theoretical methods.

Midterm exam (40%) Final exam (60%)

10-12 per week

At least an average of 65% (or equivalent) in the final two years of an Australian undergraduate degree with introductory level courses in Economics, Statistics and Econometrics

Hal R. Varian, Intermediate Microeconomics, 8th edition, W.W. Norton, 2009

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