Economics for Management
This module focuses on problems that arise with decision making in firms, and how you as a manager can address these problems using economics. The course takes a problems solving approach. You will be presented with problems that have arisen in real world firms and shown how these problems can be addressed using ideas from economics. The course requires the ability to critically analyse readings and is based on problem sets. Only a modest amount of quantitative proficiency will be required.
Full module specification
|Module title:||Economics for Management|
|Duration of module:||
Duration (weeks) - term 2: |
Economics offers powerful insights into the world of business. This introductory economics course aims:
• to provide an essential, simple, useable body of economics - based tools, which will both provide the basis for further study and equip students with a real understanding of the role of economics in business.
• to encourage students to understand how we as managers can make decisions more effectively and why we can sometimes make poor decisions
• to give students an understanding of how businesses use economic theory to make decisions
• to illustrate how economics is relevant to a number of areas of management
ILO: Module-specific skills
- 1. Compute the relevant costs of any decision.
- 2. Use marginal analysis to make extent (how much) decisions
- 3. Make investment decisions that increase firm value.
- 4. Set optimal prices and price discriminate
- 5. Predict industry-level changes using demand/supply analysis.
- 6. Develop long-run strategies to increase firm value.
- 7. Use game theory to predict how your actions influence those of others.
- 8. Solve the problems caused by moral hazard and adverse selection.
- 9. Align individual incentives with the goals of the company.
- 10. Align division incentives with the goals of the company.
ILO: Discipline-specific skills
- 11. demonstrate reasoning and problem-skills.
- 12. demonstrate an understanding of the links between problems in business and economic theory
ILO: Personal and key skills
- 13. demonstrate problem-solving and independent study skills
- 14. use the ELE and the online resources that are companion to the textbook to develop IT skills
Learning activities and teaching methods (given in hours of study time)
|Scheduled Learning and Teaching Activities||Guided independent study||Placement / study abroad|
Details of learning activities and teaching methods
|Category||Hours of study time||Description|
|Scheduled||22 (2 hours per week)||Lectures|
|Scheduled||4-5 (1 hour each)||Tutorials|
|Guided Independent Study||12 ( approx 1 hour per week)||Web-based activities|
|Guided Independent Study||34 (approx 3 hours per week)||Use of Online Resources|
|Guided Independent Study||56 (approx 5 hours per week)||Reading|
|Guided Independent Study||22 (2 hours per week)||News Research and Reading|
|Form of assessment||Size of the assessment (eg length / duration)||ILOs assessed||Feedback method|
|Tutorials||Throughout the term||1-12||Feedback on tutorial exercises|
Summative assessment (% of credit)
|Coursework||Written exams||Practical exams|
Details of summative assessment
|Form of assessment||% of credit||Size of the assessment (eg length / duration)||ILOs assessed||Feedback method|
|Examination||100||2 hours in May||1-13||Exam result and feedback as requested|
Details of re-assessment (where required by referral or deferral)
|Original form of assessment||Form of re-assessment||ILOs re-assessed||Timescale for re-assessment|
|Examination (100%)||Examination 100%||1-13||Referral Exam Period - Exam result and feedback as requested|
- Week 1: Introduction
- Week 2: Extent Decisions: How much is enough?
- Week 3: Pricing Decisions
- Week 4: Understanding Markets
- Week 5: More Complex Pricing Decisions
- Week 6: Strategic Games
- Week 7: Auctions
- Week 8: Adverse Selection, Moral Hazard
- Week 9: Incentive Alignment
Indicative learning resources - Basic reading
Managerial Economics: A Problem Solving Approach (4th or 5th edition) by Luke M. Froeb, Brian T. McCann, Mikhael Shor, and Michael R. Ward. Published by Cengage Learning. Earlier editions, which can be obtained second hand online are fine as well.
The Art of Strategy: A Game Theorist’s Guide to Success in Business and Life by Barry J. Nalebuff and Avinash K. Dixit
Thinking, fast and slow by Daniel Kahneman.
Module has an active ELE page?
Last revision date