2019/20 Undergraduate Module Catalogue

LUBS2420 Business Economics

10 creditsClass Size: 200

Module manager: Henry Duncanson
Email: H.Duncanson@leeds.ac.uk

Taught: Semester 1 (Sep to Jan) View Timetable

Year running 2019/20

Pre-requisite qualifications

LUBS1940 Economics for Management
OR
LUBS1950 Economic Theory & Applications 1

This module is approved as a discovery module

Module summary

This module is about what economists have to say about firms once we go beyond traditional micro and take into account the existence of uncertainty and imperfect information. The course covers the theories at the basis of the most exciting developments in microeconomics in the last thirty years. Issues we look at include why firms exist, corporate governance, authority in the employment relationship and what makes people work.

Objectives

On completing this module, students will be able to demonstrate:
- a clear knowledge and understanding of the different economic perspectives on the nature and organisation of firms;
- a basic knowledge of the relevant literature
- an ability to apply the corresponding concepts and models to discussions for firm behaviour and efficiency in different institutional settings.

Learning outcomes
On completing this module, students will be able to demonstrate:
- Critically evaluate the problem of asymmetric information and see how it applies to many real world situations
- An ability to create employment contracts to overcome some of the problems with asymmetric information
- Critically evaluate the advantages and disadvantages of these contracts using data and relevant evidence
- Critically synthesize theories of the firm and apply these to mergers both horizontal and vertical integration

Syllabus

The focus of the module is on the economics of organisation and of management.

We cover:
- the meaning of efficiency in the basic theory of the firm
- the reasons why firms exist
- horizontal and vertical integration
- asymmetric information
- risk and uncertainty
- the principal-and-agent relationship
- corporate governance and the performance of managers
- authority and incentives in the employment contract

Teaching methods

Delivery type	Number	Length hours	Student hours
Lecture	11	1.00	11.00
Seminar	4	1.00	4.00
Private study hours			85.00
Total Contact hours			15.00
Total hours (100hr per 10 credits)			100.00

Opportunities for Formative Feedback

There will be opportunities to get feedback on your understanding throughout the module as well as two pieces of work being marked.

Methods of assessment

Exams

Exam type	Exam duration	% of formal assessment
Standard exam (closed essays, MCQs etc)	2 hr 00 mins	100.00
Total percentage (Assessment Exams)		100.00

The resit for this module will be 100% by 2 hour examination.

Reading list

The reading list is available from the Library website

Last updated: 30/04/2019

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