Module Code - Title:
EC4427
-
MANAGERIAL ECONOMICS
Year Last Offered:
2025/6
Hours Per Week:
Grading Type:
N
Prerequisite Modules:
EC4101
EC4102
EC4004
Rationale and Purpose of the Module:
This module aims to provide students with insights into how economics can aid managerial decision making within firms that operate in an increasingly global environment. Reflecting the highly globalized nature of tastes, production, labor markets, and financial markets in today's world it provides tools for understanding managerial decision making under conditions of certainty and uncertainty (including risk analysis). It examines the nature of the firm in the global economy and different models of corporate governance. It covers economic approaches to decsion making on production and cost. It also explores decision making on the demand side of the firm by covering demand estimation and differnet models of pricing.
Syllabus:
The module begins with economic perspectives on the firm including neo-classical, managerial discretion and behavioural models. It also covers property rights and transaction cost perspectives of the firm. It explores how economic theory contirbutes a perspective on corporate governance and examines international models of corporate governance. It examines decision making in relation to production using cost and production theory. It proceeds to cover demand side issues such as demand estimation, demand analysis and pricing. It extends pricing analysis by covering prices under different market structures such as different models of oligopoly. It examines the make or buy decision in the context of the boundaries of the firm and the growing prevalence of outsouring in a global context. It also examines decision making under conditions of risk and uncertainty.
Learning Outcomes:
Cognitive (Knowledge, Understanding, Application, Analysis, Evaluation, Synthesis)
Students should be able to:
Describe different economic perspectives of the firm;
Calculate optimal levels of the factors of production in order to achieve efficiency;
Conduct contribution analysis;
Estimate a demand function using ordinary least squares;
Set optimal prices under different market structures;
Analyse decision making under conditions of risk and uncertainty;
Understand economic perspectives on the firm and corporate governance;
Estimate demand functions and set optimal prices;
Conduct risk analysis and analyse decision making under conditions of uncertainty.
Affective (Attitudes and Values)
Appreciate how economics provides just one perspective of the firm.
Understand different perspectives on corporate governance.
Understand how economics can contribute to understaning managerial decision making.
Psychomotor (Physical Skills)
How the Module will be Taught and what will be the Learning Experiences of the Students:
The module will be delivered in a series of lectures and tutorials. The module seeks to develop students who are knowledgeable about the fundamental theoretical and mathematical concepts underlying managerial economics. Students will be delivered assignments in weekly lectures which must be conducted before attending weekly tutorials. The assignments focus on problem solving with solutions provided in tutorials as well as discussions about issues relevant to the problems set. The focus on discussion sessions requires students to articulate their knowledge and collaborate with classmates on developing their mathematical skills.
The content of the module will reflect ongoing research developments on aspects such as theories of the firm, pricing and decision making under uncertainty.
Research Findings Incorporated in to the Syllabus (If Relevant):
Prime Texts:
Samuelson, W.F., Marks, S.G. and Zagorsky, J.L. (2025)
Managerial Economics
, Wiley
Other Relevant Texts:
Douma, S and Schreuder, H. (2017)
Economic Approaches to Decision Making
, Pearson
Besanko, D, Dranove, D, Shanley, M and Schaefer, S. (2017)
Economics of Strategy
, Wiley
Programme(s) in which this Module is Offered:
BBBUSTUFA - BUSINESS STUDIES
BBBSFRUFA - FRENCH
BBBSGEUFA - GERMAN
BBBSJAUFA - JAPANESE
BSECMSUFA - Economics and Mathematical Sciences
HDBEFLTFA - Business and English as a Foreign Language (Pre Ma
Semester(s) Module is Offered:
Autumn
Module Leader:
Eoin.Reeves@ul.ie