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Managerial economics MN2028

This is level two microeconomics course. It is less theoretical than a microeconomic principles course and more attention is given to topics which are relevant to managerial decision making.

Prerequisites / exclusions

If taken as part of a BSc degree, courses which must be passed before this course may be attempted:

  • EC1002 Introduction to economics
  • MT105a Mathematics 1 or MT1174 Calculus.

This course may not be taken with EC2066 Microeconomics.

Topics covered

  • individual (one person) decision making under uncertainty, attitudes towards risk and the value of information
  • theory of games and strategic decision making, including its applications to oligopoly, collusion among firms, product differentiation, entry deterrence and other market practices
  • the effects of asymmetric information in areas such as bargaining, bidding and auctions, situations of moral hazard and adverse selection
  • corporate governance in modern organisations

Learning outcomes

If you complete the course successfully, you should be able to:

  • be prepared for Marketing and Strategy courses by being able to analyse and discuss consumer behaviour and markets in general
  • be able to analyse business practices with respect to pricing and competition
  • be able to define and apply key concepts in decision analysis and game theory.
  • be able to confidently analyse different market structures and equilibrium outcomes in each of them

Assessment

Unseen written exam (3 hrs).

Essential reading

  • Varian, H.R. Intermediate microeconomics: a modern approach. New York: W.W. Norton and Co., 2014. ninth edition [ISBN 9780393123968].

Course information sheets

Download the course information sheets from the LSE website.