Microeconomics studies the behavior of economic agents, such as households and firms, and their interaction with various forms of economic institutions. The microeconomics research group is made up of a large and active group of researchers working on a wide range of topics.

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One subgroup specializes in market/mechanism design and social choice theory. The research focuses primarily on the design of strategy-proof mechanisms, auction design, voting rules, and provision of public goods. Another active group of researchers uses empirical and experimental methods to understand individual decision making and behavior in games. The topics of research include cooperation and communication in games and decision making under risk and uncertainty. Other research areas include cooperative and non-cooperative game theory, public economics and industrial organization.

Members of the group have published in leading journals such as Econometrica, American Economic Review, Journal of Economic Theory, Theoretical Economics, Games and Economic Behavior and Management Science, The Review of Economic Studies, Economic Journal och Experimental Economics.