Content, progress and pedagogy of the module

In the first part of the module, market demand and supply in a given market of complete competition will be deduced, based on presumptions regarding the behaviour of households and companies. The efficiency of the corresponding market equilibrium will be assessed and placed in relation to the equilibrium in a market of incomplete competition as well as the equilibrium in case of other market imperfections. Causes and solutions applying to these imperfections in the market, including economic policy and regulation, are discussed on the basis of the microeconomic theory and practical examples.

Analysis tools in the module's second part are related to strategy and organisational analysis. Game theory will be introduced and used in both the module's first (microeconomics) and second (managerial economics) parts. The reasons for and timing of market transactions within organisations or in a given market will also be discussed. Different types of organisations will be analysed in the course on organisational analysis. Finally, the behaviour of individuals and groups both inside and outside of the organisation will be analysed; in this context, the motivational and delimiting effects of incentive structures will be included.

Learning objectives

Knowledge

The student must through the module obtain knowledge about

• Possessing knowledge of the behaviour of households and companies.

• Possessing knowledge of the assumptions behind complete competition as well as the efficiency of the

  corresponding market equilibrium.

• Identifying and exemplify microeconomic issues related to market imperfections.

• Possessing insight into theories, models and analysis tools within strategy and organisational analysis.

Skills

The student must through the module obtain skills in:

• Applying comparative statics in connection with changes in a given market.

• Assessing the efficiency as well as the effects of taxation.

• Analysing issues related to the imperfections of the market.

• Applying game theory when analysing strategic behaviour.

• Applying theories, models and analytical tools on specific issues within strategy and organisational analysis

Competences

The student must through the module obtain competences to:

• Identifying micro-economic issues.

• Arguing in favour of the use of micro-economic theory on examples and practical issues.

• Arguing in favour of the application of theories, models and analytical tools on strategic issues and organisational analysis.

Exam

Exams