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: 2023/4

Module Convenor: Dr Garth Holloway
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

• The Fundamental Theory of Public Goods


• Evidence For Public Goods


• The Private Provision of A Public Good


• The Case For Government Intervention

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: Profit 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


• Bowley 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 Decision 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.

Contact hours:

	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

Summative Assessment Methods:

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:

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:

50% overall.

Reassessment arrangements:

By coursework.

Additional Costs (specified where applicable):

1) Required text books:  None

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: 30 March 2023