ME2705 Microeconomics 7.5 credits

The course develops a formal mathematical framework for the analysis of price formation, the efficiency of markets and the strategic interaction on markets. The mathematical production is based on optimization and multivariable analysis. The course starts with a brief overview of these fields . The following themes are treated:

• Consumer and producer theory
• Competition
• Theory of general equilibrium
• Welfare analysis
• Strategic behaviour and game theory
• Information assymetries

On completion of the course, the student should:

• Be able to use and derive advanced microeconomics theory to analyse market competition, technological change and productivity growth, with mathematically formalised models.
• Be able to describe and apply formal mathematical models to prognosticate how supply and demand for specific goods will develop.
• Have knowledge of duality and optimisation for modern applied economical analysis.
• Have knowledge and tool to analyse welfare economics effects of technical and commercial development.
• Be able to use game theory for the analysis of strategic decisions.
• Be able to use advanced microeconomics theories and models
• Have knowledge how these can be applied for decision making in company, for example by engineers in managerial positions.

At least 180 credits of higher education, of which at least 30 credits in mathematics/economics, and documented proficiency in English B or the equivalent.

Jehle, G.A., Reny, P.J. (2001) Advanced Microeconomic Theory (3rd edition)  (eller senaste upplaga) Addison-Wewsley Longman Inc.

Ytterligare artiklar och material förmedlas via kursadministrationen.

If the course is discontinued, students may request to be examined during the following two academic years.

• TEN1 - Exam, 6.0 credits, grading scale: A, B, C, D, E, FX, F
• ÖVN1 - Exercise, 1.5 credits, grading scale: P, F

Based on recommendation from KTH’s coordinator for disabilities, the examiner will decide how to adapt an examination for students with documented disability.

The examiner may apply another examination format when re-examining individual students.

Kristina Nyström

• All members of a group are responsible for the group's work.
• In any assessment, every student shall honestly disclose any help received and sources used.
• In an oral assessment, every student shall be able to present and answer questions about the entire assignment and solution.

Replaces AH2001.