BAM5082 - Business Economics for Decision Making

Objectives:

(1) explain and critically analyse traditional and alternative theories of the firm
(2) outline and illustrate the importance of production and costs in a competitive environment;
(3) employ decision analysis as a managerial instrument;
(4) evaluate the debate surrounding advertising and motivation;
(5) evaluate different theories of structural change;
(6) identify and analyse the factors that constrain the growth of a firm;
(7) explain the structure, conduct, performance paradigm and identify issues relating to market structure;
(8) critically evaluate particular policy related issues.

Content:

Theories of the firm: traditional, Baumol's sales/revenue maximisation, Marris's model of managerial enterprise and the behavioural models associated with Cyert and March.
Production, costs and the competitive environment.
Decision analysis: pricing, marketing, employment and labour decisions. The structure, conduct, performance paradigm, and market concentration monopolies: good or bad?
Advertising debate, invention, innovation and diffusion. Industrial structure, structural change, industrial development and decline, measures of concentration.
The growth of firms: mergers and take-overs; vertical and horizontal integration; diversification; constraints on growth.
The nature of competition: barriers to entry, product differentiation, market concentration, contestable markets and pricing strategies.
Government and EU policy relating to monopoly, restrictive practise and privatised firms.

Learning and Teaching Information:

The module will be delivered with a core of weekly lectures supported by weekly small group tutorials. In tutorials all students in the group will be expected to discuss questions issued in advance based on common set reading.

Lecture
Contact hours 20
Number of groups 1

Tutorial
Contact hours 16
Number of groups 4

Assessment: