Nottingham University Business School
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Economics of Pricing and Decision Making

Please note that the following information may be subject to change.

Programme: Undergraduate

Module Code: N12445

Semester: Spring

Convenor: Pia Weiss

Credits & Level: 10 credits; Level 2

Pre-requisites: N11127 (Quantitative Methods 1b) and either N11607 (Business Economics) or N11115 (Microeconomics for Business B1). Equivalent modules from the School of Economics are also acceptable.

Co-requisites: None.

Target Students: Available to Part I and Part II Business School students with the appropriate pre-requisite N11127 Quantitative Methods 1b AND EITHER N11116 Business Economics B1 OR N11115 Microeconomics for Business B1. Equivalent modules from the School of Economics or School of Mathematics are also acceptable.

Delivery: 11 ninety minute lectures, and 2 sixty minute seminars

Assessment: 2 hour exam (100%)

Exam Format:Section A: Compulsory to answer 5 short questions with a maximum of 3 purely mathematical answers
Section B: Answer one essay question out of a choice of two

Summary of Content This module presents an introduction to economic decision making with a focus on the firm's pricing decisions and mechanisms, including:

Monopoly pricing
Oligopoly pricing (non-co-operative and collusive)
Pricing under uncertainty

Aims To introduce students to the economics of price formation, both resulting from oligopolistic interaction, and from decision making under uncertainty.

Key Words: Oligopoly; pricing; economics.

Learning Objectives & Outcomes Knowledge and understanding
This module develops a knowledge and understanding of:
  • The development, access and operation of markets for resources, goods and services
  • The microeconomics of decision and choice; economic welfare. Understanding extends to economic policy, analytical methods and model-based argument.

    The applications of economics, in particular in the field of industrial economics.
Intellectual skills
This module develops:
  • The ability to analyse facts and circumstances to determine the cause of a problem and identifying and selecting appropriate solutions
  • Conceptual and critical thinking, analysis, synthesis and evaluation
Professional practical skills
This module develops:
  • Facility with key concepts used in decision making, including opportunity cost, incentives, equilibrium, strategic thinking, expectations and marginal analysis.
Transferable (key) skills
This module develops:
  • Articulating and effectively explaining information
  • Subject-specific transferable skills including abstraction, analysis, deduction and induction, and problem framing.
Knowledge and understanding (Industrial Economics)
This module develops a knowledge and understanding of:
  • The applications of economics. To discover how to apply relevant economic principles and reasoning to a variety of applied topics, in particular in the fields of industrial organisation and managerial economics.
  • Understanding of distinctive economic theories, interpretations and modelling approaches, and their competent use
  • The applications of economics to design, guide and interpret commercial, economic, social and environmental policy.
  • Mathematical methods for economics
  • Economic principles and tools addressing the microeconomic issues of decision and choice
  • Economic principles and tools addressing the microeconomic issues of the production and exchange of goods
  • Economic principles and tools addressing the microeconomic issues of the pricing and use of inputs

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