Economía Empresarial (18BBA60003)

General information

Type:	BAS	Curs:	2	Period:	S semester
ECTS Credits:	6 ECTS

Teaching Staff:

Group	Teacher	Department	Language
Sec: A	Josep Domenech Ponsi	Economía, Finanzas y Contabilidad	CAT

Group	Teacher	Department	Language
Sec: B	Josep Domenech Ponsi	Economía, Finanzas y Contabilidad	ESP

Group	Teacher	Department	Language
Sec: C	Josep Domenech Ponsi	Economía, Finanzas y Contabilidad	CAT

As a basic second-year course, it is important for students to have correctly assimilated the content of the Economics I (microeconomics) and Economics II (macroeconomics) courses.

It's important for students to remember concepts such as demand elasticity, market power and its sources, monopolies and market efficiency.

Lectures: 35 hours
Participatory sessions: 15 hours
Group work during lecture sessions (tutored by faculty): 10h

Groups will present their projects during the participatory sessions over the last couple of weeks of class.

We estimate that students need to dedicate an hour of individual study for every hour of lecture in order to stay abreast of the class, working diligently for this to hold true. Similarly, each participatory session (1.5h) also requires one hour of independent study prior to each session in order to make the most of said sessions. The group project already foresees 10 hours of in-class time with tutoring from faculty. However, groups will need to dedicate an additional 15h to successfully complete their projects and prepare a good presentation.

The Managerial Economics course is part of the Economics component of the undergraduate degree programme and thus makes the following contributions along with the Department's other courses:

1) Develop students' analytical skills, mental agility and critical outlook with regard to a company's problems and economic relationships with its environment.

2) Provide the highest level of professional training and the necessary information for future executives or managers.

Upon successfully completing this course students will:

1) Have acquired the necessary knowledge and tools to analyse and interpret reality from an economic perspective;
2) Have studied the principal subjects of Managerial Economics and seen how the discipline's theoretical models enable us to analyse these; students will also have analysed real case studies in these fields;
3) Be capable of critically developing different approaches, decisions and microeconomic and macroeconomic policies, while bearing in mind issues related to social responsibility. They will also have learnt to apply Games Theory to analyse the strategic actions companies carry out in competitive environments.

Based on these global aims, we will develop a a series of specific objectives during the course regarding a number of competencies:

A. Introduce reference frameworks, theories and tools accompanied by the key information for their use in the analysis of scenarios/case studies and the proposal of measures/solutions for their improvement.
B. Facilitate the definition of concepts, theories and/or models; recognise the general relevance of the aforementioned concepts for the analysis of scenarios/case studies and the proposal of solutions and/or research.
C. Promote the integration and structuring of the knowledge acquired in this course through specific assignments designed for this purpose.
D. Promote a critical attitude in the analysis of reality and during discussions with other students.

6. Strategic thought, systematic thought

7. Comprehension of the complexity of the local and global contexts

13. Adaptability, flexibility

4. Conveying information and/or knowledge

1. Knowledge acquisition, comprehension and structuring

12. Autonomy, independence, initiative, pro-activeness

11. Quality orientation and achievement

2. Application of knowledge to achieve results

1. What is "Managerial Economics"? Remembering concepts Remembering basic microeconomic concepts (demand elasticity and cost structures) but focusing on them from a Managerial Economics perspective

2. Game Theory We will introduce this topic which is interesting on its own but also necessary as a tool for the following topics discussed in class. We will use it to define concepts such as strategy (dominated, dominant, conservative, etc.), explore a new equilibrium concept (Nash Equilibrium) and learn to burn our bridges when necessary.

3. The power of the market From monopolies to competitive markets and including different market structures with varying degrees of competition. Cartels, entry barriers, the importance of knowing how to differentiate our products, etc.

4. Pricing policies and market segmentation In this section we will review second and third-degree discrimination to examine the role of obstacles and talk about new types of discrimination between both degrees, discrimination which is more applied and designed based on the type of consumer: two-part fees, flat fees, discounts and demand points. We will also examine two important particular cases: intertemporal price discrimination and bundling.

5. Problems stemming from information-based errors There are three types of information-based errors: asymmetry, incompleteness and imperfection. Each of these leads to a lack of market efficiency, representing threats but also opportunities for market players. We have to be able to distinguish each type of problem (What guarantees do we demand from someone selling us a used car? How do we check beforehand if a worker we're hiring is going to be productive? How do we encourage a client who has purchased an all-risk health insurance policy from us to also take care of himself/herself?). We will also examine what incentive mechanisms we can create to attempt to resolve these situations. Information can become an economic good in its own right. This leads us to ask: does this information have a price? Should we buy information?

6. Agency Theory and contracts. Incentives. In this section we will learn to see companies as a series of contracts between executives, shareholders, providers, clients and other parties. The individuals that make up companies are egotistical and have their own objects. This underscores the importance of designing proper incentive models to ensure that the group as a whole functions correctly.

The learning process combines different pedagogical methodologies in both lectures and participatory sessions. Whenever faculty assign a specific reading or require students to prepare the following class session beforehand, students will have to sit a short quiz to ensure that they have duly followed faculty members¿ instructions.

We will use the Peer Learning methodology in one of the course topics.

During lecture classes, faculty will describe and analyse the key theoretical instruments and formal models that are relevant for the course content. Participatory sessions will primarily consist of practical exercises, including questions for discussion and debate. Similarly, faculty will allot time during lectures every week for groups to move forward with their projects.

ASSESSMENT BREAKDOWN

Short Bibliography:

The class will follow the basic lines found in:
D.W. Carlton & J.M. Perloff: Modern Industrial Organization, 4th edition, global edition, 2015, Pearson Ed. Limited.

Other reference books:
Jeffrey R. Church & Roger Ware, Industrial Organization: A Strategic Approach, 2000, available at http://works.bepress.com/jeffrey_church/23/ (you have to register via the website to download it).

References will also be made to other books and book chapters such as the following:
- Pyndick & Rubinfeld, Microeconomía. Intermedia, Prentice Hall (version in English available).
- Dixit & Nalebuff, El Arte de la Estrategia, Antoni Bosch, ed. (version in English available)
- Tarziján & Paredes Organización industrial para la estrategia empresarial, Prentice-Hall.)

We should highlight here that students are responsible for checking Moodle on a regular basis to stay abreast of any changes or new material, downloading them as necessary. This material in no way aims to be exhaustive; they will have to be complemented with class notes.

Group	Teacher	Department
Sec: A	Josep Domenech Ponsi	Economía, Finanzas y Contabilidad

Group	Teacher	Department
Sec: B	Josep Domenech Ponsi	Economía, Finanzas y Contabilidad

Group	Teacher	Department
Sec: C	Josep Domenech Ponsi	Economía, Finanzas y Contabilidad