APME83-Consumer, Producers, Markets and Trade
Module Provider: School of Agriculture, Policy and Development
Number of credits: 20 [10 ECTS credits]
Level:7
Terms in which taught: Autumn / Spring term module
Pre-requisites:
Non-modular pre-requisites:
Co-requisites:
Modules excluded:
Current from: 2020/1
Email: garth.holloway@reading.ac.uk
Type of module:
Summary module description:
Engage with the rigorous application of microeconomic reasoning underpinning the theory and practice of consumer, producer, market, and trade behaviour analysis. Examine the theories of these interlinked concepts and focus on the application of microeconomic tools to understand empirically observable consumer, producer, markets and trade phenomena. Work with case studies and research topics within which the module providers are internationally recognised. Explore key concepts of behavioural economics; reflect on the questions of risk, uncertainty, and choice; and discuss theoretical and practical issues surrounding international trade.
Aims:
This module is designed to familiarise students with the rigorous application of microeconomic reasoning underpinning the theory and application of consumer behaviour, the theory and application of producer behaviour, the theory and application of market behaviour and the theory and application of trade behaviour. While the theory of these interlinked concepts provides the foundation for their study, emphasis resides upon the application of the microeconomic tools for better understanding empirically observable consumer, producer, markets and trade phenomena.
Assessable learning outcomes:
It is intended that the students who pass this module are able to enact formal microeconomic reasoning at levels enabling them to digest representative scientific literature; conduct theoretical evaluations of some commonly-encountered mathematical-economic structures; and undertake empirical research.
Additional outcomes:
Successful students should also have an appreciation of the ways in which formal, microeconomic analyses uncover hitherto unidentified solutions to many real-world problems encountered in a broad collection of scientific disciplines.
Outline content:
Below is an indicative outline of the module content – it maybe subject to change:
Lecture 1: Introduction and Module Organisation
- Models, Methods and Their Roles in Economics
- Introduction to Consumer Theory
- The Budget Constraint
Lecture 2: Preferences
- Utility
- Choice
- Lecture 3: Demand
- Consumer’s Surplus
Lecture 4: Introduction to The Lagrangean Method
- Application to Geometric Choice
- Application to Estimator Choice
- Application to Consumer Choice
Lecture 5: Buying and Selling
- The Household Production Model
- Intertemporal Choice
Test One
Lecture 6: Introduction to Behavioural Economics
- Rational Choice
- Bounded Rationality
Lecture 7: Introduction to Game Theory
- Basic Game Theory Concepts
- Nash Equilibrium
- Subgame Perfect Equilibrium
- Some Basic Games, Puzzles and Evidence
Lecture 8: Introduction to Public Goods
Lecture 9: Some Further Results In Behavioural Economics
- Auctions
- The Winner’s Curse
- Experimental Economics
- Experimental Markets from Chamberlain to Vernon Smith
Lecture 10: Multinational Firms
- The Basic Theory of The Multinational Firm
- The Economic Geography of Multinational Firms
Test Two
Lecture 11: Introduction to The Theory of The Producer
- Technology
- Production Possibilities
- The Composed-Error Model
Lecture 12: Pr ofit Maximization
- Cost Minimization
- Cost Curves
Lecture 13: Firm Supply
- Industry Supply
- Monopoly
Lecture 14: Monopolistic Behaviour
- Third-Degree Price Discrimination
- Oligopoly
- Cournot-Nash Behaviour
- Stackelberg Leader-Follower Behaviour
- Bo wley Leader-Leader Behaviour
Lecture 15: Exchange
- Pareto-Efficiency and Welfare
- ` Production
- The Robinson-Crusoe Economy
Test Three
Lecture 16: Introduction to Risk and Uncertainty
- Risk
- Expected Utility
- Prospect Theory
- Implications for Farmer Dec ision Making
- Insurance and Futures
Lecture 17: Temporal Discounting
- Present Value
- Net Present Value
- Future Value
- Rational, Hyperbolic and Alternative Approaches
Lecture 18: Social Welfare, Utilitarian Justice and Choice
- The Benthamite Approach
- The Rawlsian Approach
- Arrows Impossibility Theorem
Lecture 19: Introduction to International Trade Theory
- Comparative Advantage
- The Ricardian Model
- The Hecksher-Ohlin Model
Lecture 20: Introduction to the Instruments of Trade Policy
- Tariffs, Subsidies, Quotas and Welfare
- International Trade Institutions
- The General Agreement on Tariffs and Trade
Test 4
Brief description of teaching and learning methods:
Web, whiteboard and projection media are all used to exchange learning inputs within this module.
| Autumn | Spring | Summer | |
| Lectures | 20 | 20 | |
| Guided independent study: | |||
| Wider reading (independent) | 10 | 10 | |
| Wider reading (directed) | 10 | 10 | |
| Exam revision/preparation | 30 | 30 | |
| Advance preparation for classes | 10 | 10 | |
| Revision and preparation | 20 | 20 | |
| Total hours by term | 0 | ||
| Total hours for module | 200 |
| Method | Percentage |
| Class test administered by School | 100 |
Summative assessment- Examinations:
Summative assessment- Coursework and in-class tests:
4 x Tests
Formative assessment methods:
Problem sets will be assigned on a regular basis but will not be graded. However, completion of these assignments is intended to prepare students for the four modular tests.
Penalties for late submission:
Penalties for late submission on this module are in accordance with the University policy. Please refer to page 5 of the Postgraduate Guide to Assessment for further information: http://www.reading.ac.uk/internal/exams/student/exa-guidePG.aspx
Assessment requirements for a pass:
50% overall.
Reassessment arrangements:
By coursework.
Additional Costs (specified where applicable):
Last updated: 15 July 2020
THE INFORMATION CONTAINED IN THIS MODULE DESCRIPTION DOES NOT FORM ANY PART OF A STUDENT'S CONTRACT.