ECM620-Economics of Corporate Strategy

Module Provider: School of Politics, Economics and International Relations
Number of credits: 20 [10 ECTS credits]
Level:7
Terms in which taught: Spring term module
Pre-requisites:
Non-modular pre-requisites:
Co-requisites:
Modules excluded:
Current from: 2022/3

Module Convenor: Dr Kiran Karrouchi
Email: k.karrouchi@reading.ac.uk

Type of module:

Summary module description:

This module seeks to provide a foundation to the economic analysis of corporate decision-making – such as price-setting, output-setting, mergers, and anti-competitive behaviour. In this context, firms’ incentives and strategic interactions among firms are emphasised.  Both the role of market competition  and the imperatives for government intervention are discussed.

Aims:

The aims of this module are:

• to provide knowledge and understanding of the economic analysis that underlies the functioning of markets and industries and the behaviour of firms within them;


• to give students analytical skills to understand problems in business economics;


• to provide students with the ability to analyse different forms of government intervention in terms of their implications for social welfare and economic efficiency.

The module includes an introductory coverage of game theory, giving students the knowledge necessary for the topics that follow.

Assessable learning outcomes:

Students will be assessed on their ability to apply economic analysis to the problems of modern business enterprises. This will include the ability to analyse: the influence on corporate strategy of competition among rivals; the strategies of dominant firms and firms operating in oligopolistic markets; how firms’ practice can impact economic welfare; the rationale for government intervention and its potential consequences. Students may also be assessed on game theory.

Additional outcomes:

The module provides the opportunities to improve students’ ability to work with case studies, to translate abstract concepts/theories into practical problem solving and enhance their facility with decision-making analysis including incentives, equilibrium and marginal analysis.

Students should be able to apply the techniques discussed to enterprises and markets in different countries and at different times.

Outline content:

The module aims to cover the following economic aspects of corporate strategies: an introduction to the game theoretical tools /models to the understanding firms’ strategic behaviour; the strategies of dominant firms and firms operating in oligopolistic markets; contractual relations between firms including mergers; the impact of firms’ practice on economic welfare; and different forms of government intervention.

Brief description of teaching and learning methods:

A combination of lectures, group discussions of assigned topics and problems, and assessed essays.

Contact hours:

	Autumn	Spring	Summer
Lectures		21
Guided independent study:		159	20
Total hours by term		180	20
Total hours for module	200

Summative Assessment Methods:

Method	Percentage
Written exam	60
Written assignment including essay	40

Summative assessment- Examinations:
One 2-hour unseen written paper.
Postgraduate examinations are held in the Summer term.

Summative assessment- Coursework and in-class tests:

Written coursework (worth 40% of the overall mark) likely to be in the form of structured case study report(s). 

Formative assessment methods:

Penalties for late submission:

The below information applies to students on taught programmes except those on Postgraduate Flexible programmes. Penalties for late submission, and the associated procedures, which apply to Postgraduate Flexible programmes are specified in the policy £Penalties for late submission for Postgraduate Flexible programmes£, which can be found here: https://www.reading.ac.uk/cqsd/-/media/project/functions/cqsd/documents/cqsd-old-site-documents/penaltiesforlatesubmissionpgflexible.pdf
The Support Centres will apply the following penalties for work submitted late:

• where the piece of work is submitted after the original deadline (or any formally agreed extension to the deadline): 10% of the total marks available for that piece of work will be deducted from the mark for each working day (or part thereof) following the deadline up to a total of five working days;
• where the piece of work is submitted more than five working days after the original deadline (or any formally agreed extension to the deadline): a mark of zero will be recorded.

The University policy statement on penalties for late submission can be found at: https://www.reading.ac.uk/cqsd/-/media/project/functions/cqsd/documents/cqsd-old-site-documents/penaltiesforlatesubmission.pdf
You are strongly advised to ensure that coursework is submitted by the relevant deadline. You should note that it is advisable to submit work in an unfinished state rather than to fail to submit any work.

Assessment requirements for a pass:
A minimum weighted average mark of coursework and examination of 50%.

Reassessment arrangements:
Re-examination for all modules takes place in August/September of the same year.
Re-assessment is by examination only; coursework is not included at the second attempt.

Additional Costs (specified where applicable):

1) Required text books: 

Essential: Industrial Organization, Theory and Practice, by Waldman and Jensen,  5th edition, RRP £43.39; E-book available from the library without extra cost.

Supplementary: Competition Policy: Theory and Practice, by Motta, RRP £47.99; E-book available from the library without extra cost.

2) Specialist equipment or materials:  None

3) Specialist clothing, footwear or headgear:  None

4) Printing and binding:  None

5) Computers and devices with a particular specification:  None

6) Travel, accommodation and subsistence:  None

 

Last updated: 22 September 2022