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EC335: Managerial Economics

  • Isleide Zissimos

    Module Leader
  • Andreas Markoulakis

    Module Lecturer
12/15 CATS - Department of Economics
Spring Module

Principal Aims

This module uses traditional economic tools, for example theory of markets and game theory, to teach the students to identify profitable decisions. When a bad decision is made by a manager, we explore its possible sources, which can include: (1) The manager was the wrong person to take the decision. (2) The manager did not have enough information to make a good decision. (3) The manager had an incentive to take the wrong decision. The economic tools help the students to develop a view on the appropriate way to tackle these issues, which can be, for example, either to change the decision-maker, or to change the information flow, or to change the incentives in the business organisation.

Principal Learning Outcomes

12 CATS

Subject knowledge and understandingUnderstand key concepts in Managerial Economics, such as market structures, game theory, imperfect information, principal-agent problemsThe teaching and learning methods that enable students to achieve this learning outcome are: Lectures, Reading, Exercise question sheets, Tutorial discussions, EssayThe summative assessment methods that measure the achievement of this learning outcome are: Formative: Exercise question sheet answers, Essay, Summative: Summer Examination.

Subject knowledge and understandingDemonstrate knowledge of economic trends, institutions and policies, especially in the context of business and industry-related problems and issues.The teaching and learning methods that enable students to achieve this learning outcome are: Exercise question sheets, Essay, Tutorial discussions and presentations.The summative assessment methods that measure the achievement of this learning outcome are: Formative: Exercise question sheet answers, Essay, Summative: Summer Examination.

Subject knowledge and understanding: Abstract and simplify basic economic problems through the application of simple theoretical models.

Key Skills Communicate knowledge and understanding of economics in written, spoken, graphical and in appropriate mathematical forms.The teaching and learning methods that enable students to achieve this learning outcome are: Exercise question sheets, Essay, Tutorial discussions and presentations.The summative assessment methods that measure the achievement of this learning outcome are: Formative: Exercise question sheet answers, Essay, Summative: Summer Examination.

Cognitive SkillsAnalyse and formulate models for understanding and solving problems.The teaching and learning methods that enable students to achieve this learning outcome are: Exercise question sheets, Essay, , Tutorial discussions and presentations.The summative assessment methods that measure the achievement of this learning outcome are: Formative: Exercise question sheet answers, Essay, Summative: Summer Examination.

Cognitive SkillsAnalyse competing models and hypotheses in a critical way.The teaching and learning methods that enable students to achieve this learning outcome are: Exercise question sheets, Essay, The summative assessment methods that measure the achievement of this learning outcome are: Formative: Essay, Summative: Summer Examination.

Key Skills Present the output of their own work to an audience.The teaching and learning methods that enable students to achieve this learning outcome are: Tutorial discussions and presentations.Exercise question sheets, Essay, The summative assessment methods that measure the achievement of this learning outcome are: Formative:, Tutorial presentations.

Key Skills Conduct individual research into an Economic topic, using world wide web and library resources.The teaching and learning methods that enable students to achieve this learning outcome are: ???The summative assessment methods that measure the achievement of this learning outcome are: Formative: Exercise question sheet answers, Essay, Summative: Summer Examination.

Subject-Specific/Professional SkillsSelect and apply appropriate economic models and techniques to particular problems especially relating to business and industry.

Subject-Specific/Professional SkillsProduce concise and analytical reports relating to economic problems and issues.The teaching and learning methods that enable students to achieve this learning outcome are: Essay, , Tutorial presentations.The summative assessment methods that measure the achievement of this learning outcome are: Formative: Essay, , Summative: Summer Examination.

15 CATS

Subject knowledge and understandingUnderstand key concepts in Managerial Economics, such as market structures, game theory, imperfect information, principal-agent problemsThe teaching and learning methods that enable students to achieve this learning outcome are: Lectures, Reading, Exercise question sheets, Tutorial discussions, EssayThe summative assessment methods that measure the achievement of this learning outcome are: Formative: Exercise question sheet answers, Essay, Summative: Summer Examination.

Subject knowledge and understandingDemonstrate knowledge of economic trends, institutions and policies, especially in the context of business and industry-related problems and issues.The teaching and learning methods that enable students to achieve this learning outcome are: Exercise question sheets, Essay, Tutorial discussions and presentations.The summative assessment methods that measure the achievement of this learning outcome are: Formative: Exercise question sheet answers, Essay, Summative: Summer Examination.

Key Skills Conduct individual research into an Economic topic, using world wide web and library resources.The teaching and learning methods that enable students to achieve this learning outcome are: ???The summative assessment methods that measure the achievement of this learning outcome are: Formative: Exercise question sheet answers, Essay, Summative: Summer Examination.

Subject knowledge and understandingAbstract and simplify basic economic problems through the application of simple theoretical models.

Key Skills Communicate knowledge and understanding of economics in written, spoken, graphical and in appropriate mathematical forms.The teaching and learning methods that enable students to achieve this learning outcome are: Exercise question sheets, Essay, Tutorial discussions and presentations.The summative assessment methods that measure the achievement of this learning outcome are: Formative: Exercise question sheet answers, Essay, Summative: Summer Examination.

Key Skills Present the output of their own work to an audience.The teaching and learning methods that enable students to achieve this learning outcome are: Tutorial discussions and presentations.Exercise question sheets, Essay, The summative assessment methods that measure the achievement of this learning outcome are: Formative:, Tutorial presentations.

Cognitive SkillsAnalyse and formulate models for understanding and solving problems.The teaching and learning methods that enable students to achieve this learning outcome are: Exercise question sheets, Essay, , Tutorial discussions and presentations.The summative assessment methods that measure the achievement of this learning outcome are: Formative: Exercise question sheet answers, Essay, Summative: Summer Examination.

Cognitive SkillsAnalyse competing models and hypotheses in a critical way.The teaching and learning methods that enable students to achieve this learning outcome are: Exercise question sheets, Essay, The summative assessment methods that measure the achievement of this learning outcome are: Formative: Essay, Summative: Summer Examination.

Subject-Specific/Professional SkillsSelect and apply appropriate economic models and techniques to particular problems especially relating to business and industry.

Subject-Specific/Professional SkillsProduce concise and analytical reports relating to economic problems and issues.The teaching and learning methods that enable students to achieve this learning outcome are: Essay, , Tutorial presentations.The summative assessment methods that measure the achievement of this learning outcome are: Formative: Essay, , Summative: Summer Examination.

Syllabus

12 CATS

1. Competitive Markets: (a) Review of Supply, Demand and Market Equilibrium. (b) Welfare Properties of Competitive Markets.

2. Market Structures: (a) Monopoly and Monopoly Pricing. (b) Oligopoly, Quantity Setting and Pricing Models, First Mover Advantage.

3. Game Theory: (a) Introduction to Game Theory, Nash Equilibrium. (b) Simultaneous and Sequential Games. (c) Classical Games and Applications.

4. Internal Organisation: (a) The Theory of the Firm, Transaction Costs, Make vs. Buy, Incomplete Contracts. (b) The Principal-Agent Problem, Incentive Contracts, Uncertainty and Risk-Aversion.

5. Asymmetric Information: (a) Moral Hazard with Applications to Finance. (b) Adverse Selection, The Lemons Problem, Herding.

15 CATS

1. Competitive Markets:

(a) Review of Supply, Demand and Market Equilibrium. (b) Welfare Properties of Competitive Markets.2. Market Structures: (a) Monopoly and Monopoly Pricing. (b) Oligopoly, Quantity Setting and Pricing Models, First Mover Advantage.3. Game Theory: (a) Introduction to Game Theory, Nash Equilibrium. (b) Simultaneous and Sequential Games. (c) Classical Games and Applications. 4. Internal Organisation: (a) The Theory of the Firm, Transaction Costs, Make vs. Buy, Incomplete Contracts. (b) The Principal-Agent Problem, Incentive Contracts, Uncertainty and Risk-Aversion. 5. Asymmetric Information: (a) Moral Hazard with Applications to Finance. (b) Adverse Selection, The Lemons Problem, Herding.

Context

Optional Module
RN21 - Year 3, MN31 - Year 3, MN32 - Year 3, MN32 - Year 4, MN34 - Year 3, MN34 - Year 4, MN35 - Year 3, MN35 - Year 4, MN36 - Year 4, MN36 - Year 5, MN37 - Year 4, MN37 - Year 5, N140 - Year 4, N1R1 - Year 4, N1R2 - Year 4, N1R3 - Year 4, N1R4 - Year 4, N201 - Year 3, N202 - Year 4, N203 - Year 4, NN35 - Year 3, NN36 - Year 4
Pre or Co-requisites
All of: EC131-15 Economics for Business AND Any of: EC229-15 Economics of Strategy EC229-12 Economics of Strategy
Restrictions
May not be combined with modules EC208-15
Part-year Availability for Visiting Students
Not available on a part-year basis

Assessment

Assessment Method
12 CATS - Coursework (40%) + 2 hour examination (summer) (60%) 15 CATS - Coursework (50%) + 2 hour examination (50%)
Coursework Details
12 CATS , 2 hour examination (summer) (60%) 15 CATS , Group Project (40%), 2 hour examination (50%)
Exam Timing
N/A

Exam Rubric

Time Allowed: 2 Hours

Read all instructions carefully- and read through the entire paper at least once before you start entering your answers.

There are TWO SECTIONS in this paper. Answer TWO questions from Section A (60 marks) and TWO questions in Section B (40 marks).

Approved pocket calculators are allowed.

You should not submit answers to more than the required number of questions. If you do, we will mark the questions in the order that they appear, up to the required number of questions in each section.

Previous exam papers can be found in the University’s past papers archive. Please note that previous exam papers may not have operated under the same exam rubric or assessment weightings as those for the current academic year. The content of past papers may also be different.

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