Course title

Business Economics

Responsible person
TRIEBS Thomas
to enter grades
Numbering CodeJ2ML600

Day・Period, etc. Other(対面)

開講区分

単位数

1st semester

2.0

Timetable Slot
Code1J391

Lesson topic
Microeconomics for BusinessLesson target
This course introduces students to microeconomics, and some economics of industrial organisation. It covers utility
maximization and demand; profit maximization and supply; market equilibrium in the short and long run; oligopoly
and game theory; information and externalities. The course will highlight how the differen theories inform businessstrategy.

Syllabus and plan
Session 1
Introduction to demand and supply using an in-class game (trading in the pit). Introduction to economic modelling.
Economic decisions: opportunity costs, and economic rents and incentives; Comparative advantage, specialization,and markets; Firms, technology and production; Economic models: How to see more by looking at less.
Relevance for firm strategy: e.g. reduce cost through innovation, management as an input, pricing mark-ups anddemand elasticity.
The Economy 2.0: Microeconomics: Units 1, 2. L: 2.2.1, 3.1.3
Session 2
This session looks at consumer behaviour and introduces the model of utility maximization. It shows how individual
demand is derived from it and highlights the relevance of demand elasticity. It applies the model to anindividual’s labour supply decision.
Relevance for firm strategy: e.g. decrease demand elasticity through marketing, price discrimination, how is thefirm’s hiring affected by labour regulation, e.g. minimum wage, universal income?
Readings:
The Economy 2.0: Microeconomics: Units 3. L: 3.4.1, 3.5.1, 3.7.1, 7.8.1
Intermediate Microeconomics: Chapters 2-6, 8
Session 3
This session introduces game theory and Nash equilibrium.
Relevance for firm strategy: Strategic interaction, e.g. price setting in non-competitive markets.
Readings:The Economy 2.0: Microeconomics: Units 4.
Intermediate Microeconomics: Chapters 29-30
Session 4
The firm. Incomplete contracts, principal and agent.
Relevance to firm strategy: how to manage a firm?
Readings
The Economy 2.0: Microeconomics: Unit 6
Why Do Management Practices Differ across Firms and Countries? Nicholas Bloom & John Van Reenen, Journal ofEconomic Perspectives, vol. 24, no. 1, Winter 2010https://www.aeaweb.org/articles?id=10.1257/jep.24.1.203
Intermediate Microeconomics: Chapter 27, 38
Session 5Technology, profit maximization and market power
Relevance to firm strategy: how to set prices correctly depending on the market structure
Readings
The Economy 2.0: Microeconomics: Unit 7. L: 2.7.1, 3.1.1, 3.1.2., 7.3.1, 7.4.1, 7.5.1, 7.6.1
Intermediate microeconomics: Chapters 19-23
Session 6
Competitive market equilibrium and cartels
Readings
The Economy 2.0: Microeconomics: Unit 8.
Intermediate Microeconomics: Chapters 16, 28
Session 7
Market failure: externalities and asymmetric information
Readings
The Economy 2.0: Microeconomics: Unit 8. L: 12.1.1, 12.3.1
Intermediate Microeconomics: Chapter 35, 38
Session 8Revision

Exam
Details: tbd

Evaluation method
Exam

Evaluation baselinen/aNotice (include info. on related class)This course is offered primarily to the students of KIMAP in Management, and any other students are required toobtain an advanced permission from the administration of the Graduate School of Business Administration to register
this class. Note that application might not be accepted when number of application is over the capacity of theclass.
Review and preparation
Revise the relevant maths for algebra and calculus (see syllabus: "Maths revision")

Office hour・Contact information
Contact: t.triebs@lboro.ac.uk

Message for student

Improvemenets in Teaching

Text
The Economy 2.0 Microeconomics
https://www.core-econ.org/the-economy/microeconomics/0-3-contents.html / : , ,ISBN:Intermediate Microeconomics / Hal Varian : Norton ,9th edition (or simi ,ISBN:
Reference Material
n/aClassroom Language
EnglishKeywordsMicroeconomics