Spring semester 2026

Credits
5 ECTS

Teaching method
Classroom instruction, 24 lectures

Examination
2-hour written examination (closed book)
On-site written exam without a PC (completed on paper).

Assessment
Pass/No pass, no co-examiner (re-exam oral)

Lecturer
Nicola Maaser

Contents
We develop a coherent set of topics in advanced microeconomics while introducing students to the analytical principles that underpin modern microeconomic research. The course builds on individual and social choice theory, progressing through monotone comparative statics to equilibrium analysis in markets and strategic settings.

The material provides an excellent opportunity to learn many of the tools and techniques of modern economic theory. Equipped with this knowledge, students will find it easier to review the current literature on applied theoretical and empirical microeconomics. They will be able to approach research questions in areas where microeconomic reasoning is central, such as industrial organization, political economy, labor, finance, and public economics.

Subject areas:

Part I: Individual and Social Choice

• The Theory of Consumer Choice and Demand
• Social Choice and Efficiency

Part II: Monotone Comparative Statics, with Application to Producer Theory 

Part III: Equilibrium

• Competitive Equilibrium in an Exchange Economy, Example with Production
• Equilibrium in Strategic Contexts (Nash)
• Application: Voluntary Contributions and Public Goods

Feedback
The following types of feedback are used in this course:

• Facilitated and non-facilitated peer feedback
• Oral activities in class
• Self-assessment
• Feedback on problem set submissions (written or in tutorial sessions)

Description of qualifications
The purpose of this course is to provide students with a solid foundation in advanced microeconomic theory, focusing on individual and social choice, comparative statics, and equilibrium analysis. The course emphasizes analytical tools that form the basis for modern theoretical and applied microeconomic research. Upon completion of the course, the student should be able to demonstrate:

Knowledge and understanding:

• of fundamental concepts and tools in individual and social choice theory.
• of duality methods in consumer and producer theory.
• of monotone comparative statics and their applications.
• of the theoretical foundations of competitive and strategic equilibrium.
• of selected applications, such as voluntary public good provision.

Skills:

• to derive and interpret demand, expenditure, and indirect utility functions.
• to apply duality and envelope theorems in economic analysis.
• to use monotone comparative statics to derive qualitative predictions of behaviour.
• to formulate and solve simple equilibrium models in competitive and strategic contexts.
• to critically assess the assumptions underlying microeconomic models.

Competences:

• to select and apply appropriate theoretical methods to analyse microeconomic problems.
• to read and evaluate advanced theoretical papers in microeconomics.
• to identify connections between individual optimization and collective outcomes.
• to discuss and communicate how equilibrium concepts apply in markets and strategic settings.
• to employ microeconomic theory as a foundation for research in related fields.

Academic prerequisites
Basic micro and game theory (as acquired, e.g., through 2401: Microeconomics, Game theory part of 2432: Game Theory and International Trade, Mikroøkonomi 1 & 2)

For PhD students at AU (ECON), this course has been pre-approved as an internal BSS PhD course equivalent to 5 ECTS.

Prerequisites for examination participation
The course will feature three problem sets, two of which must be submitted to participate in the exam. Feedback on handed-in problem sets will be provided, and students can earn bonus points for the exam by submitting their own problem sets and giving feedback to others.

Literature
Mas-Colell, A., M. D. Whinston, and J.R. Green (1995). Microeconomic Theory. Oxford University Press, Oxford. (Chapter 1-5, 15, 16, 21)

Selected articles:

• Bergstrom, T., L. Blume, and H. Varian (1986). On the Private Provision of Public Goods, Journal of Public Economics 29, 25-49.
• Geanakoplos, G. (2005). Three Brief Proofs of Arrow's Impossibility Theorem, Economic Theory 26, 211-215.

Supplementary reading: Rubinstein, A. (2005). Lecture Notes in Microeconomic Theory. Princeton University Press. (freely available)

The total reading is approximately 350 pages.

Registration
By email to Susanne Christensen, sch@econ.au.dk no later than 1 February 2026.

Schedule
17-02-2026    Tuesday    12:00-14:00    1816-028
19-02-2026    Thursday    10:00-12:00    1816-128
24-02-2026    Tuesday    12:00-14:00    1816-028
26-02-2026    Thursday    10:00-12:00    1328-220
03-03-2026    Tuesday    12:00-14:00    1816-028
05-03-2026    Thursday    10:00-12:00    1816-128
11-03-2026    Wednesday    14:00-16:00    1816-028
12-03-2026    Thursday    10:00-12:00    1816-128
16-03-2026    Monday    12:00-14:00    1832-129
18-03-2026    Wednesday    12:00-14:00    1832-139
19-03-2026    Thursday    10:00-12:00    1832-129
19-03-2026    Thursday    12:00-14:00    1832-129