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Introduction

This module aims to introduce students to firm behaviour including central questions such as why firms exist, what they can do better (and worse) than markets and how they compete. The course involves the use of descriptive, graphical and mathematical models (such as very basic game theory) twinned with topical examples. By the end of the course students should have a good grasp of how and why firms act as they do and will have a better understanding of related topical issues in the real world. The course also serves as a basic introduction to the field of industrial economics.

Principal Aims

To introduce students to firm behaviour. The core method is an introduction to game theory and oligopoly theory to illustrate the way firms compete and how the different parts of the firm co-operate to achieve success. This is central to the understanding of industrial economics, and will provide students with a better understanding of how firms compete and co-operate in the modern economy. It will also develop your knowledge of game theory and how it can help economists to understand firm behaviour.

Principal Learning Outcomes

Subject Knowledge and Understanding:...understand why firms play an important role in modern economies, including why firms exist.

Cognitive Skills:...outline and analyse the reasons why firms might choose to merge and when this might happen.

Subject Knowledge and Understanding:...understand how we model how firms price and position their products and how they interact and compete with each other.

Subject Knowledge and Understanding:...explain the problems that firms have to overcome (relating to cooperation and coordination) and understand different interpretations of firms’ role.

Subject Knowledge and Understanding:...understand the resources and assets firms use to generate and maintain profits such as innovation and reputation.

Syllabus

Context

Optional Module

L100 - Year 1, L116 - Year 1, LM1D (LLD2) - Year 1, V7ML - Year 1, L1L8 - Year 1, LA99 - Year 1, R9L1 - Year 1, R3L4 - Year 1, R4L1 - Year 1, R2L4 - Year 1, R1L4 - Year 1, R2L5 - Year 1, R4LA - Year 1, R1L5 - Year 1, L1CA - Year 1

Pre or Co-requisites

There are no pre-requisites for students on any of our single honours or joint honours degrees. For any other student, grade B or better in Mathematics and Economics at A-level, or the equivalent.

Assessment

Assessment Method

Centrally-timetabled examination (On-campus) (100%)

Coursework Details

Centrally-timetabled examination (On-campus) (100%)

Exam Timing

Summer

Reading Lists