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Managerial Economics (2225.YR.002880.2)

General information

Type:

BAS

Curs:

2

Period:

S semester

ECTS Credits:

6 ECTS

Teaching Staff:

Group Teacher Department Language
Year 2 Josep M Sayeras Maspera Economía, Finanzas y Contabilidad CAT, ESP

Prerequisites

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.

Previous Knowledge

With respect to the Economics I component (microeconomics), it's important for students to remember concepts such as demand elasticity, market power and its sources, monopolies and market efficiency.
In terms of the Economics II component (macroeconomics), they should remember concepts such as economic indicators and basic macroeconomic identity as well as how the IS-LM-BP and AD-AS models work

Workload distribution

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.

COURSE CONTRIBUTION TO PROGRAM

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 acumen 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.

Course Learning Objectives

Upon successfully completing this course students will:

a) Have acquired the necessary knowledge and tools to analyse and interpret reality from an economic perspective;
b) 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;
c) Be capable of critically examining 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 and how to apply these when analysing scenarios/case studies and proposing measures/solutions for their improvement.
B. Facilitate the definition of concepts, theories and/or models; recognise the relevance of the aforementioned concepts when analysing scenarios/case studies and proposing 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.

CONTENT

1. What is "Managerial Economics"? Remembering concepts

Remembering two basic microeconomic concepts (demand elasticity and cost structures) but focusing on them from a Managerial Economics perspective

2. The power of the market: Different market structures

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.

3. Pricing policies

In this section we will review second and third-degree price discrimination to examine the role obstacles play and also discuss new types of price discrimination between both degrees, that is, the most widely-used and those designed based on the type of consumer: Two-part fees, flat fees/rates, discounts and demand points. We will also examine two important cases: Inter-temporal price discrimination and bundling.

4. 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 risk it all when necessary.

5. Platform economies

Uber, Deliveroo, Glovo, etc. What business model is behind these companies? Can we apply the same conclusions to other types of structures? If not, what are the key differences between them? That said, are there any similarities?

Relation between Activities and Contents

1 2 3 4 5
Final exam          
Individual participation          
Project          
Case studies          

Methodology

The learning process combines different pedagogical methodologies in both lectures and participatory sessions. Lecture classes serve to describe and analyse the key theoretical instruments and formal models relevant for this course. Participatory sessions will fundamentally serve to carry out practical exercises and other activities (case studies, ethnographic study and market study project). In addition, this subject applies the "peer-learning" methodology. That said, regardless of the methodology, students are expected to assume full responsiblity for their own learning processes.

ASSESSMENT

ASSESSMENT BREAKDOWN

Description %
Final exam 100
Individual participation 30
Project 50
Case studies 20

Assessment criteria

Students' final marks for this subject consist of two components:

1, Ongoing assessment: individual participation (30%), case studies (20%) and project (50%). Individual student marks on group assignments will bear in mind the activity mark as well as the mean mark individual students receive from the other group members ("peer evaluation").

2. Final exam

Students' final marks for the course will be their final exam or ongoing assessment marks, whichever is highest. However, to pass the subject, students have to meet the following requirements:
1. Minimum mark on the final exam: 5 out of 10
2. Minimum mark on the project: 4 out of 10
3. Minimum mark on individual participation: 6 out of 10

If students fail to meet any of these three requirements, they will have to re-sit the final exam. In this case, their final marks will consist of their individual participation marks during the class (50%) and their marks on the re-sit exam (50%).

Bibliography

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 their own learning. They should thus check Moodle on a regular basis to stay abreast of the subject. The class notes in no way aim to be exhaustive; they will have to be complemented with other materials provided as well as the short bibliography and other readings (when necessary).

Timetable and sections

Group Teacher Department
Year 2 Josep M Sayeras Maspera Economía, Finanzas y Contabilidad

Timetable Year 2

From 2022/9/6 to 2022/10/11:
From Tuesday to Wednesday from 10:45 to 13:15. (Except: 2022/9/21, 2022/9/28 and 2022/10/5)
Each Wednesday from 10:45 to 11:45. (Except: 2022/9/7 and 2022/9/14)

From 2022/9/21 to 2022/10/5:
Each Wednesday from 11:45 to 13:15.

From 2022/11/2 to 2022/11/29:
From Tuesday to Wednesday from 10:45 to 13:15. (Except: 2022/11/9, 2022/11/16 and 2022/11/23)
Each Wednesday from 11:45 to 13:15. (Except: 2022/11/2)
Each Wednesday from 10:45 to 11:45. (Except: 2022/11/2)

From 2022/11/30 to 2022/12/15:
Each Wednesday from 10:45 to 13:15. (Except: 2022/12/7 and 2022/12/14)
Each Tuesday from 14:30 to 16:00. (Except: 2022/12/6)
Each Thursday from 8:45 to 12:00. (Except: 2022/12/1 and 2022/12/8)

Thursday 2022/12/15 from 8:45 to 12:45.