Unit Code/ Title EC425 MICROECONOMICS 2: ECONOMICS AND ORGANISATIONS Introduction Welcome to this second level one semester, core unit on economics and the organisation, which I hope you will enjoy By following this unit you should a recognise how important economic analysis is to our understanding of the organisation, whether in the public or private sector, and be able to apply the knowledge learnt to a variety of contexts a identify the wider implications resulting from the microeconomic analysis of organisations, particularly public policy solutions More specifically we are going to examine the following questions a Why do we need organisations and hierarchical organisational structures? a How can we resolve moral hazard problems (i.e. shirking) within organisations? a What are the efficiency implications of production and cost analysis? a What are the welfare implications associated with monopolistic and oligopolistic structures? This approach moves us from an internal examination of the organisation to its interaction within the industrial environment and thus its economic implications for society as a whole. We are going to use traditional neo- classical analysis and game theory to address these questions, and, as you are more familiar with some elements of the former I will begin the lecture programme by examining games. This form of analysis is pervasive in economics nowadays and so you will need to be aware of its importance from the outset Recommended texts Note that I am recommending 2 texts though you should only purchase one Besanko D and Braeutigam RR(2002 )Microeconomics. An Integrated Approach, J Wiley and Sons, New York arian H ( 2003)Intermediate Microeconomics. A Modern Approach, 6th edition, W Norton and Company, London However, both books do not quite cover the syllabus. The programme ofUnit Code / Title EC425 MICROECONOMICS 2: ECONOMICS AND ORGANISATIONS Introduction Welcome to this second level, one semester, core unit on economics and the organisation, which I hope you will enjoy. By following this unit you should ‰ recognise how important economic analysis is to our understanding of the organisation, whether in the public or private sector, and be able to apply the knowledge learnt to a variety of contexts. ‰ identify the wider implications resulting from the microeconomic analysis of organisations, particularly public policy solutions. More specifically we are going to examine the following questions: ‰ Why do we need organisations and hierarchical organisational structures? ‰ How can we resolve moral hazard problems (i.e. shirking) within organisations? ‰ What are the efficiency implications of production and cost analysis? ‰ What are the welfare implications associated with monopolistic and oligopolistic structures? This approach moves us from an internal examination of the organisation to its interaction within the industrial environment and thus its economic implications for society as a whole. We are going to use traditional neo￾classical analysis and game theory to address these questions, and, as you are more familiar with some elements of the former I will begin the lecture programme by examining games. This form of analysis is pervasive in economics nowadays and so you will need to be aware of its importance from the outset. Recommended Texts Note that I am recommending 2 texts though you should only purchase one. Besanko D and Braeutigam R R (2002) Microeconomics. An Integrated Approach, J Wiley and Sons, New York. Varian H (2003) Intermediate Microeconomics. A Modern Approach, 6th edition, WW Norton and Company, London. However, both books do not quite cover the syllabus. The programme of