Postgraduate

Modules

Modules

NBS8301 : Managerial Economics and Organisational Architecture

Semesters
Semester 1 Credit Value: 10
Semester 2 Credit Value: 10
ECTS Credits: 10.0

Aims

This module aims to provide an advanced understanding of market structure and develop essential tools for the economic analysis of business decisions. The module also develops problem-solving skills and the ability to critically appraise academic research within a team-work setting

Outline Of Syllabus

Semester 1: Analytical tools and techniques for business

1. Introduction to business tools and methods
Basic statistics for business and finance: measures of distributional characteristics; measures of statistical association.

2. OLS regression
Use of OLS to estimate linear relationships; use of OLS to estimate nonlinear relationships and trends; limitations to OLS regression.

3. Business forecasting
Time-series models; assessing forecast accuracy; the use of economic leading indicators; evidence from firm-specific profit forecasts.

4. Optimisation
Linear programming; the use of calculus in economic optimisation.

5. Theory of games
Pure strategy games and the Nash Equilibrium; limitations of pure strategy games; application of mixed strategy games to obtain a one-shot Nash Equilibrium.
6. Critical path analysis
Application of critical path analysis to projects; the insights and limitations of this methodology


Semester 2: Economic concepts for business

1. Introduction to business economics
(a) Course objectives and scope;
(b) Determinants of profit; economic analysis of demand and supply, market equilibrium, various types of elasticity, total revenue and costs

2. Market structure
(a) The structure-conduct-performance paradigm (SCP) and an evaluation of its predictions
(b) The resource-base-view of the firm (RBV) and persistence of profits (POP) methodology

3. Oligopoly
(a) Models in which interdependence not recognised (Cournot)
(b) Game theory and Nash equilibria

4. Pricing Strategies
(a) Transfer pricing
(b) Price discrimination and its desirability

5. Barriers to entry
(a) Simple models involving price and minimum efficient scale
(b) Game theoretic approaches
(c) Government regulation

6. Models of non-price competition
(a) Advertising and optimal advertising expenditure
(b) Horizontal and vertical product differentiation

7. The market for corporate control
(a) Criticisms of the neo-classical model
(b) Behavioural theories of the firm and a review of the empirical evidence

Teaching Methods

Teaching Activities
Category Activity Number Length Student Hours Comment
Scheduled Learning And Teaching ActivitiesLecture162:0032:00N/A
Guided Independent StudyAssessment preparation and completion183:0083:00N/A
Guided Independent StudyDirected research and reading140:0040:00N/A
Scheduled Learning And Teaching ActivitiesWorkshops13:003:00Large Computer Workshops
Scheduled Learning And Teaching ActivitiesDrop-in/surgery12:002:00N/A
Guided Independent StudyIndependent study140:0040:00N/A
Total200:00
Teaching Rationale And Relationship

• The group project provides a forum for discussion and the development of team-working skills within the context of a set of business problems. The project also develops problem-solving, IT and numeracy skills.
• Lectures provide a framework for student centred learning and provide the appropriate vehicle for delivery of material that leads to the construction of a team report (semester 1) and the individual written exam (semester 2).

Assessment Methods

The format of resits will be determined by the Board of Examiners

Exams
Description Length Semester When Set Percentage Comment
Written Examination1202A80N/A
Other Assessment
Description Semester When Set Percentage Comment
Prob solv exercises1M20Group Project Work 6000 words
Formative Assessments
Description Semester When Set Comment
Prob solv exercises2MOpportunities for students to submit practice attempts at exam questions prior to Sem 2 exam
Assessment Rationale And Relationship

• The group project provides a forum for discussion and the development of team-working skills within the context of a set of business problems. The project also develops problem-solving, IT and numeracy skills.
• The exam in semester 2 requires students to engage critically with concepts from economics within a business decision-making framework.

Reading Lists

Timetable