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EC335: Managerial Economics

  • Isleide Zissimos

    Module Leader
12/15 CATS - Department of Economics

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

Subject knowledge and understanding:…demonstrate 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 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 assessment methods that measure the achievement of this learning outcome are: Formative: Exercise question sheet answers, Essay; Summative: Summer Examination.

Cognitive Skills:…analyse 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 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 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 assessment methods that measure the achievement of this learning outcome are: Formative: Exercise question sheet answers, Essay; Summative: Summer Examination.

Cognitive Skills:…analyse 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 assessment methods that measure the achievement of this learning outcome are: Formative: Exercise question sheet answers, Essay; Summative: Summer Examination.

Subject-Specific/Professional Skills:…select and apply appropriate economic models and techniques to particular problems especially relating to business and industry.

Subject-Specific/Professional Skills:…produce 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 assessment methods that measure the achievement of this learning outcome are: Formative: Essay; Summative: Summer Examination.

15 CATS

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

Subject knowledge and understanding:…demonstrate 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 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 assessment methods that measure the achievement of this learning outcome are: Formative: Exercise question sheet answers, Essay; Summative: Summer Examination.

Cognitive Skills:…analyse 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 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 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 assessment methods that measure the achievement of this learning outcome are: Formative: Exercise question sheet answers, Essay; Summative: Summer Examination.

Cognitive Skills:…analyse 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 assessment methods that measure the achievement of this learning outcome are: Formative: Exercise question sheet answers, Essay; Summative: Summer Examination.

Subject-Specific/Professional Skills:…select and apply appropriate economic models and techniques to particular problems especially relating to business and industry.

Subject-Specific/Professional Skills:...produce 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
Modules: EC131-15 and (EC229-15 or EC229-12)
Restrictions
May not be combined with modules EC208-15 or EC231-15

Assessment

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

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