Introductory description

This module aims to introduce students to firm behaviour including central questions such as why firms exist, what they can do better (and worse) than markets and how they compete. The course involves the use of descriptive, graphical and mathematical models (such as very basic game theory) twinned with topical examples. By the end of the course students should have a good grasp of how and why firms act as they do and will have a better understanding of related topical issues in the real world. The course also serves as a basic introduction to the field of industrial economics.

Module web page

Module aims

Outline syllabus

This is an indicative module outline only to give an indication of the sort of topics that may be covered. Actual sessions held may differ.

The module will typically cover the following topics: What are firms and why do they exist; How firms compete; Analysis of strategy (using basic game theory)However, the module leader may add additional topics and sub-topics where appropriate.

Learning outcomes

By the end of the module, students should be able to:

• Subject Knowledge and Understanding:...understand why firms play an important role in modern economies, including why firms exist. The teaching and learning methods that enable students to achieve this learning outcome are: this is covered during the first few lectures of the course and supported by seminar questions .The summative assessment methods that measure the achievement of this learning outcome are: the exam which typically includes at least one question relating to this part of the course.
• Cognitive Skills:...outline and analyse the reasons why firms might choose to merge and when this might happen. The teaching and learning methods that enable students to achieve this learning outcome are: this is covered in the middle of the course and supported by seminar questions. The summative assessment methods that measure the achievement of this learning outcome are: the exam which typically includes at least one question relating to this part of the course.
• Subject Knowledge and Understanding:...understand how we model how firms price and position their products and how they interact and compete with each other. The teaching and learning methods that enable students to achieve this learning outcome are: this is covered in the final more technical part of the course and supported by seminar questions. The summative assessment methods that measure the achievement of this learning outcome are: the exam which typically includes at least one question relating to this part of the course.
• Subject Knowledge and Understanding:...explain the problems that firms have to overcome (relating to cooperation and coordination) and understand different interpretations of firms’ role. The teaching and learning methods that enable students to achieve this learning outcome are: this is covered during the first few lectures of the course and supported by seminar questions. The summative assessment methods that measure the achievement of this learning outcome are: the exam which typically includes at least one question relating to this part of the course.
• Subject Knowledge and Understanding:...understand the resources and assets firms use to generate and maintain profits such as innovation and reputation. The teaching and learning methods that enable students to achieve this learning outcome are: this is covered in the middle of the course and supported by seminar questions. The summative assessment methods that measure the achievement of this learning outcome are: the exam which typically includes at least one question relating to this part of the course.

Indicative reading list

Please see Talis Aspire link for most up to date list.

View reading list on Talis Aspire

Subject specific skills

Students will have the opportunity to develop skills in:
Analytical thinking and communication
Analytical reasoning
Critical thinking
Strategic thinking
Problem-solving
Policy evaluation
Analysis of institutions
Analysis of incentives
Analysis of optimisation

Transferable skills

Students will have the opportunity to develop:
Numeracy and quantitative skills
Written communication skills
Oral communication skills
Mathematical, statistical and data-based research skills