Code
MGFE ECO 4401
Level
M1
Field
Economie
Language
Anglais/English
ECTS Credits
3
Class hours
20
Total student load
60
Program Manager(s)
Educational team
Introduction to the module
The aim of this course is to introduce students to economic way of thinking about common managerial problems. Students will learn basic formal economic models of consumer behaviour, firm’s pricing and production decision, competition and market structures.
In the first part of the course we revise the main principles and core concepts of economics: cost-benefit principle, opportunity cost, supply and demand curves, and market equilibrium. We will also build a simple formal model of consumer behaviour and firm’s production decision given market prices for firm’s inputs and output.
In the second part of the course we will focus on typical market structures:
- competitive markets (also market failures with an example of economics of pollution),
- markets under monopoly (monopolistic pricing, regulation of monopolies), and
- markets dominated by few firms (with a short introduction to the game theory).
Throughout the course we focus on common managerial problems (e.g. price discrimination, firms’ strategic behaviour in concentrated markets, auctions).
Learning goals/Programme objectives
- LG2 Having the ability to manage uncertainty and complexity with accuracy and rigor
- LG3 Having the foundations of responsible and sustainable management
Learning objectives/Intended learning outcomes
- 2.1 - Identify and analyze in depth problems, causes and impacts
- 2.2 - Explore solutions, decisions, and their relative and absolute impacts
- 3.1 - Understand and employ basic concepts, knowledge and theories related to the discipline
- 3.2 - Apply discipline knowledge appropriately and effectively
Rubrics
— (CPS2) Analytical thinking: The ability to think critically, to break down complex information, ideas, or problems into smaller, more manageable parts in order to better understand them and develop solutions.
— (CDK06) Demonstrate an understanding of the functioning of markets and their participants (consumers, organizations, public actors); monitor and respond to their dynamics (technological, competitive and in terms of demand).
— (CDK11) Describe the role of economic models in analyzing markets, business and consumer behavior, and government policies.
— (XK03) Demonstrate an understanding of computation and the basics of quantitative methods
Content : structure and schedule
Class 1. Basics of economics: consumer behaviour and demand curve
Class 2. Basics of economics: production and costs
Class 3. Market structures, competitive markets, government policies. Economics of pollution.
Class 4. Monopoly and regulation
Class 5. Price discrimination
Class 6. Oligopoly, strategic behaviour and game theory
Class 7. Auctions
Class 8. Revision of the course, Q & A.
Sustainable Development Goals
Industry, Innovation and Infrastructure
Number of SDG's addressed among the 17
1
Learning delivery
synchrone
Pedagogical methods
A typical class consists of a lecture, where main concepts are explained, followed by a problem solving session, where students should apply learned theory to qualitative and numerical examples. Homework exercises to be done between the classes intended to help the students to learn better new material and will be discussed at the beginning of the next class. Some classes will be organized as "flipped classroom".
Evaluation and grading system and catch up exams
Successful completion of classroom and homework exercises is a necessary condition to pass the course tested with 3 classroom quizzes covering Lectures 1 & 2 (test 1), 3 & 4 (test 2), and 5 & 6 (test 3).
The overal grade for the course is calculated as follows:
• Test quizzes (50%)
• Final exam (50%)
In case of a catch-up exam:
• exam (100%)
Module Policies
Professor-Student Communication
● The professor will contact the students through their school email address (IMT-BS/TSP) and the Moodle portal. No communication via personal email addresses will take place. It is the student responsibility to regularly check their IMT-BS/TSP mailbox.
● Students can communicate with the professor by emailing him/her to his institutional address. If necessary, it is possible to meet the professor in his office during office-hours or by appointment.
Students with accommodation needs
If a student has a disability that will prevent from completing the described work or require any kind of accommodation, he may inform the program director (with supporting documents) as soon as possible. Also, students are encouraged to discuss it with the professor.
Class behavior
● Out of courtesy for the professor and classmates, all mobile phones, electronic games or other devices that generate sound should be turned off during class.
● Students should avoid disruptive and disrespectful behavior such as: arriving late, leaving early, careless behavior (e.g. sleeping, reading a non-course material, using vulgar language, over-speaking, eating, drinking, etc.). A warning may be given on the first infraction of these rules. Repeated violators will be penalized and may face expulsion from the class and/or other disciplinary proceedings.
● The tolerated delay is 5 minutes. Attendance will be declared on Moodle during these 5 minutes via a QR code provided by the teacher at each course start.
● Student should arrive on time for exams and other assessments. No one will be allowed to enter the classroom once the first person has finished the exam and left the room. There is absolutely no exception to this rule. No student can continue to take an exam once the time is up. No student may leave the room during an examination unless he / she has finished and handed over all the documents.
● In the case of remote learning, the student must keep his camera on unless instructed otherwise by the professor.
Honor code
IMT-BS is committed to a policy of honesty in the academic community. Conduct that compromises this policy may result in academic and / or disciplinary sanctions. Students must refrain from cheating, lying, plagiarizing and stealing. This includes completing your own original work and giving credit to any other person whose ideas and printed materials (including those from the Internet) are paraphrased or quoted directly. Any student who violates or helps another student violate academic behavior standards will be penalized according to IMT-BS rules.
Textbook Required and Suggested Readings
W.B. Allen, N.A. Doherty, K. Weigelt, and E. Mansfield (2012) Managerial Economics, W.W. Norton & Company, 8th Edition.
McDowell, M., Thom, R., Frank, R. and B. Bernanke (2009) Principles of Economics, McGraw-Hill, 2nd European Edition.
Prerequisites
ECO3001 or similar