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2010/1 Module Catalogue
 Module Code: ECO2037 Module Title: FIRMS, STRATEGIES & MARKETS
Module Provider: Economics Short Name: ECO2037
Level: HE2 Module Co-ordinator: NEWMAN ME Mrs (Economics)
Number of credits: 30 Number of ECTS credits: 15
Module Availability

All year

Assessment Pattern
Unit(s) of Assessment

Weighting Towards Module Mark (%)

3 Hour Examination




Qualifying Condition(s)
A weighted aggregated mark of 40% is required to pass the module.
Module Overview
The module is an intermediate course to the principles of the economics of the firm and practise of making successful strategic decisions.
Module Aims
This module aims to demonstrate how various theories can help us to understand  the nature and strategy of the modern firm. The emphasis is on understanding the similarities and differences between the economists' and strategists' perspective of the firm.
Learning Outcomes

By the end of the module the student will:

  • Understand similarities and differences between the economists' and strategists' view of the firm
  • Use various models to predict the effect of changes in market conditions
  • Identify the reasons behind successful business strategies
Module Content

The following is an indication of the likely topics to be covered:-

  • The neo-classical firm: costs, revenues and profits
  • The boundaries of the firm: transactions costs and asset specificity
  • Vertical and horizontal collaborations: joint ventures, franchising, partnership alliances, etc
  • Non-profit maximising theories of the firm and the principal agent problem
  • Evaluate alternative approaches to competitive advantage: environmental 'fit' and resource based 'stretch'
  • Show how economic theory outcomes may differ from business practice in respect of product, promotion and pricing strategies
  • Discuss the role of innovation in creating and sustaining competitive advantage
  • Human resources management: adverse selection, moral hazard, free-riding in team production and on-the-job training
  • Imperfect competition and firm behaviour: Cournot, Bertrand and Stackelberg equilibria
  • Horizontal and vertical differentiation
  • The dynamic efficiency of the firm: R&D
  • Competition policy 
Methods of Teaching/Learning
Lectures (40 hrs)
Selected Texts/Journals

P. Cashiam Economics, Strategy and the Firm

S. Rickard The Economics of Organizations and Strategy
J. Roberts The Modern Firm: Organisational Design for Performance and Growth
Last Updated
28 September 2010