GRA 8055 Managerial Economics

APPLIES TO ACADEMIC YEAR 2012/2013

GRA 8055 Managerial Economics

Responsible for the course
Erling Røed Larsen

Department
Department of Economics

Term
According to study plan

ECTS Credits
5

Language of instruction
English

Introduction
Economics is the study of allocation of scarce resources, and how economies use markets, prices, and coordination mechanisms to do so. In this course, we emphasize market theory, a study of monopoly and oligopoly, and the implementation of strategies.

Learning outcome
The purpose of this course is to study the behaviour of rational economic agents in order to understand how their interaction – under various market arrangements – determine the price – and output constellations we observe in “the real world”. Particular emphasis will be placed on the strategic considerations of profit maximizing business firms – for instance in regard to their decisions concerning advertising, product differentiation, vertical integration and entry/exit in an industry.
Most business decisions will benefit from being evaluated with a firm grasp of the equilibrium response in the market. The ambition of this course is to develop in the students an intuitive and also analytical feeling for the workings of the market mechanism.In the last 20 years attention has been directed more and more towards a business managers strategic decisions, by which we mean decisions in situations where there are interactions between rational economic actors; actors which may all be smart , clever, energetic and well informed.What is called game theory offers a scientific approach to strategic decision-making of this kind, and game theory will accordingly play a role in this course as a theoretical model to approach the solutions of real-world problems.

Prerequisites
EMBA, general prerequisites

Compulsory reading
Books:
Samuelson, William F. and Spephen G. Marks. 201. Managerial economics. 6th ed. Hoboken, N.J. : Wiley. Selected parts

Recommended reading

Course outline
- Demand, supply and the market
- The theory of the firm
- Costs and supply
- Perfect competition and monopoly
- Market structure
- Game theory and interdependent decisions

    Computer-based tools
    None

    Learning process and workload
    Chapters 2, 3,5, 6, 7, 8, 9 and 10 in the textbook are essential to the course. In addition will the understanding of the basic priciples be enhanced by working through some selected cases. The teaching methods will be class-based lectures, with inputs from the students based on their prepared readings of the textbook.


    Examination
    Two hand-ins, one by the groups, one individually, where each accounts for 50 %.

    Examination code(s)
    GRA 80551 - Process evaluation; accounts for 100 % to pass the program GRA 8055, 5 ECTS credits

    The course is a part of a full Executive Master of Business Administration Program and all evaluations must be passed to obtain a certificate for the degree.

    Examination support materials
    All

    Re-sit examination
    Re-takes are only possible at the next time a course will be held. When course evaluation consists of class participation or process elements, the whole course must me re-evaluated when a student wants to retake a exam. Retake examinations entail an extra examination fee.

    Additional information

    Semester

    Oversettelser