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Distance learning course of 7 Units

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What is economics about? Economics is the problem of using the available resources as efficiently as possible so as to achieve the maximum fulfilment of society�s unlimited demand for goods and services. The ultimate purpose of economic endeavour is to satisfy human wants for goods and services. The problem is that whereas wants are virtually without limit, the resources - natural resources, labour and capital (machinery) - available at any one time to produce goods and services are limited in supply.

Resources are scarce. This fact of scarcity means that we must always be making choices about what to produce, how to produce it and for whom. Decisions must be made so that these scarce resources are allocated optimally or efficiently to their end use. This implies they could not be used more beneficially elsewhere. This is the criterion economists use to judge many economic phenomenon and is the focus of our study of the economic approaches to organisations.

Tutor Support

With this course you will have unlimited access to your own personal tutor who specialises in their field of study. It is your personal tutor's role to ensure that you receive constructive feedback and to deal with any queries you may have. You are more than welcome to telephone, fax or email your personal tutor.

You will also have access to a dedicated and friendly team of administrators and course advisors who offer sound and professional guidance and advice when you need it. This ensures that you will never feel neglected and that you will always succeed!

Assessment Method

After each lesson there will be a question paper, which needs to be completed and submitted to your personal tutor for marking. This method of continual assessment ensures that your personal tutor can consistently monitor your progress and provide you with assistance throughout the duration of the course.

What's Included

All study materials

Study Guide

Full Tutor and Admin support

Introduction and Study Framework

Unit 1: Perspectives on the Economic Approaches to Organisation
Introduction
Objectives
The economic problem
The basic concepts
Markets and organisations
Information
Summary
References
Further reading

Basic Economic Concepts and Models of Analysis

Unit 2: Co-ordination through the Market Mechanism
Introduction
Objectives
Determinants of demand
Determinants of supply
Theory of demand
Theory of production
Microeconomic theory
Market failure?
Summary
References
Further reading

Unit 3: Organisational Co-ordination
Introduction
Objectives
The firm
Organisational co-ordination
Organisational configurations
Review activity
Summary
References
Further reading

Unit 4: Information and Co-ordination Mechanisms
Introduction
Objectives
Co-ordination and information
Uncertainty and contracting
Informational asymmetry
Adverse selection and moral hazard
Value of information
Summary
References
Further reading

Economic Approaches to Organisations

Unit 5: Game Theory
Introduction
Objectives
Methodological backdrop
One- and two-shot games
Auctions
The prisoner�s dilemma: single stage
Repeated games in the prisoner�s dilemma
Review activity
Summary
References
Further reading

Unit 6: Agency Theory
Introduction
Objectives
A firm�s relationships
Positive theory of agency
Entrepreneurial firms and team production
The firm as a nexus of contracts
Theory of principal and agent
The agency contract
Second-best efficient contract
Modifications to the principal-agent model
Summary
References
Further reading

Unit 7: Transaction Cost Economics
Introduction
Objectives
Markets and organisations
An example of transaction cost economics
Transaction costs
Critical dimensions of transactions
Fundamental transformation and the hold-up problem
Organisational structures
Complex hierarchies
Markets and hierarchies: is that all?
Hybrid forms of co-ordination
Summary
References
Further reading