Professor Luis Rayo NAB5.20.

This course is compulsory on the MSc in Management. This course is not available as an outside option.

A graduate-level introduction to the foundations of managerial economics. Topics include: 1. Economics as a theory of organisation. 2. Economic Agents: Rationality and the co-ordination powers of the market (Demand and supply and equilibrium: the determinants of consumers' and firms' market responses and the nature of non-strategic interaction). 3. Strategic interaction and dynamic competition 4. Uncertainty: behaviour and markets (the economic foundations of financial markets) 5. Information and efficiency.

30 hours of seminars in the MT.

Students will be grouped into two streams. Both streams will cover the same content but will be taught separately. Each stream will have 1x3 hour lecture per week in the Michaelmas Term. Multiple review sessions will be offered throughout the term. Attendance is full optional.

A problem set will be assigned on week 5 and is due on week 7. It will be marked for feedback purposes only.

Main textbooks: S. Estrin et al, Microeconomics, Prentice Hall, 2008. Students can also consider D M Kreps, Microeconomics for Managers, W. W. Norton (2004); T van Zandt; Firms, Price and Markets, available online (2006). Saul Estrin et al., Microeconomics, Prentice Hall, 2008. B. Douglas Bernheim and Michael D. Whiston, Microeconomics, McGraw Hill, 2008.Reading lists will be provided at the beginning of the course.

Exam (100%, duration: 2 hours) in the main exam period.