Skip to main content
Unit of study_

OLET2135: Economic Strategy and Negotiation

Intensive May, 2024 [Online] - Camperdown/Darlington, Sydney

Businesses face many difficult choices when deciding how best to compete with their rivals. What prices should they charge for their product? And what product should they sell? Firms need to make decisions about RandD, investments and where they should locate. In this OLE we introduce a set of analytical (game theoretic) tools that can be used to study business and negotiation strategy. Students will apply these tools to real-world business decisions, such as: bargaining; pricing and quantity strategies; product choice; capacity competition; and strategic investment and innovation. This analysis helps us understand the day-to-day problems faced by firms, their decision-making process and the wider implications in the market of their choices.

Unit details and rules

Unit code OLET2135
Academic unit Economics
Credit points 2
Prohibitions
? 
None
Prerequisites
? 
None
Corequisites
? 
None
Assumed knowledge
? 

None

Available to study abroad and exchange students

Yes

Teaching staff

Coordinator Andrew Wait, andrew.wait@sydney.edu.au
Lecturer(s) Nick Mizen, nicholas.mizen@sydney.edu.au
Type Description Weight Due Length
Tutorial quiz Quiz 1
Online quiz; opens 22 April
20% Week 02
Due date: 26 Apr 2024 at 23:59

Closing date: 26 Apr 2024
1 hour
Outcomes assessed: LO1 LO4 LO2
Tutorial quiz Quiz 2
Online quiz; opens 29 April
20% Week 03
Due date: 03 May 2024 at 23:59

Closing date: 03 May 2024
1 hour
Outcomes assessed: LO1 LO5 LO4 LO2
Tutorial quiz Quiz 3
Online quiz; opens 6 May
20% Week 04
Due date: 10 May 2024 at 23:59

Closing date: 10 May 2024
1 hour
Outcomes assessed: LO1 LO5 LO4 LO2
Tutorial quiz Quiz 4
Online quiz; opens 13 May
20% Week 05
Due date: 17 May 2024 at 23:59

Closing date: 17 May 2024
1 hour
Outcomes assessed: LO2 LO3
Assignment Written task
Written task; opens 20 May
20% Week 06
Due date: 24 May 2024 at 23:59
300 words
Outcomes assessed: LO1 LO2 LO3 LO4 LO5

Assessment summary

Detailed information for each assessment can be found on Canvas.

Assessment criteria

The University awards common result grades, set out in the Coursework Policy (Schedule 1).

As a general guide, a High Distinction indicates work of an exceptional standard, a Distinction a very high standard, a Credit a good standard, and a Pass an acceptable standard.

Result name

Mark range

Description

High distinction

85 - 100

 

Distinction

75 - 84

 

Credit

65 - 74

 

Pass

50 - 64

 

Fail

0 - 49

When you don’t meet the learning outcomes of the unit to a satisfactory standard.

For more information see guide to grades.

Late submission

In accordance with University policy, these penalties apply when written work is submitted after 11:59pm on the due date:

  • Deduction of 5% of the maximum mark for each calendar day after the due date.
  • After ten calendar days late, a mark of zero will be awarded.

Academic integrity

The Current Student website  provides information on academic integrity and the resources available to all students. The University expects students and staff to act ethically and honestly and will treat all allegations of academic integrity breaches seriously.  

We use similarity detection software to detect potential instances of plagiarism or other forms of academic integrity breach. If such matches indicate evidence of plagiarism or other forms of academic integrity breaches, your teacher is required to report your work for further investigation.

You may only use artificial intelligence and writing assistance tools in assessment tasks if you are permitted to by your unit coordinator, and if you do use them, you must also acknowledge this in your work, either in a footnote or an acknowledgement section.

Studiosity is permitted for postgraduate units unless otherwise indicated by the unit coordinator. The use of this service must be acknowledged in your submission.

Simple extensions

If you encounter a problem submitting your work on time, you may be able to apply for an extension of five calendar days through a simple extension.  The application process will be different depending on the type of assessment and extensions cannot be granted for some assessment types like exams.

Special consideration

If exceptional circumstances mean you can’t complete an assessment, you need consideration for a longer period of time, or if you have essential commitments which impact your performance in an assessment, you may be eligible for special consideration or special arrangements.

Special consideration applications will not be affected by a simple extension application.

Using AI responsibly

Co-created with students, AI in Education includes lots of helpful examples of how students use generative AI tools to support their learning. It explains how generative AI works, the different tools available and how to use them responsibly and productively.

Support for students

The Support for Students Policy 2023 reflects the University’s commitment to supporting students in their academic journey and making the University safe for students. It is important that you read and understand this policy so that you are familiar with the range of support services available to you and understand how to engage with them.

The University uses email as its primary source of communication with students who need support under the Support for Students Policy 2023. Make sure you check your University email regularly and respond to any communications received from the University.

Learning resources and detailed information about weekly assessment and learning activities can be accessed via Canvas. It is essential that you visit your unit of study Canvas site to ensure you are up to date with all of your tasks.

If you are having difficulties completing your studies, or are feeling unsure about your progress, we are here to help. You can access the support services offered by the University at any time:

Support and Services (including health and wellbeing services, financial support and learning support)
Course planning and administration
Meet with an Academic Adviser

WK Topic Learning activity Learning outcomes
Week 01 Lecture 1. Introduction to Economic Strategies and Negotiations: Dominant strategies, price competition and the prisoners' dilemma Online class (2 hr) LO1 LO2 LO4
Tutorial 1. Dominant strategies, price competition and the prisoners' dilemma Online class (1 hr) LO1 LO2 LO4
Week 02 Lecture 2. Nash equilibrium - product differentiation and location games Online class (2 hr) LO1 LO2 LO4 LO5
Tutorial 2. Nash equilibrium - product differentiation and location games Online class (1 hr) LO1 LO2 LO4 LO5
Week 03 Lecture 3. Sequential games: first- and second-mover advantages Online class (2 hr) LO1 LO2 LO4 LO5
Tutorial 3. Sequential games: first- and second-mover advantages Online class (1 hr) LO1 LO2 LO4 LO5
Week 04 Lecture 4. Negotiation and bargaining strategies Online class (2 hr) LO1 LO2 LO3
Tutorial 4. Negotiation and bargaining strategies Online class (1 hr) LO1 LO2 LO3

Attendance and class requirements

Preparation: Students should commit to spend approximately three hours’ preparation time (reading, studying, homework, essays, etc.) for every hour of scheduled instruction.

Study commitment

Typically, there is a minimum expectation of 1.5-2 hours of student effort per week per credit point for units of study offered over a full semester. For a 2 credit point unit, this equates to roughly 40-50 hours of student effort in total.

Required readings

Module 1

Readings 1 (on Canvas)

Nguyen and Wait (2016), Essentials of Microeconomics, Routledge, Oxford.

Sections 3.1, 3.2, 3.3.1 and 3.3.2 (pp. 13-16), Section 3.4.1 (pp. 18-19), Sections 15.1, 15.2, 15.3 (pp. 128-134).

Module 2 

Reading 2 (on Canvas)

Nguyen and Wait (2016), Section 3.3.1, pp 16-18, Section 3.4.2, pp. 19-20, Sections 15.1, 15.2, 15.3 (pp. 128-134).

Module 3

Reading 3

Nguyen and Wait (2016), Section 3.5, pp. 20-24, Sections 15.5-15.6, pp. 136-143.

Module 4

Reading 4 (on Canvas)

Nguyen and Wait (2016), Chapter 5

Learning outcomes are what students know, understand and are able to do on completion of a unit of study. They are aligned with the University's graduate qualities and are assessed as part of the curriculum.

At the completion of this unit, you should be able to:

  • LO1. understand how to analyse how firms compete in strategic business environments
  • LO2. apply economic tools of analysis to business problems, and make predictions about the likely outcome in the marketplace
  • LO3. analyse firm bargaining strategies, and understand what characteristics strengthen an individual's bargaining strength
  • LO4. consider how firms compete using pricing and quantity-setting strategies, and make recommendations about the most profitable business strategies under different scenarios
  • LO5. analyse situations in which firms compete with their rivals.

Graduate qualities

The graduate qualities are the qualities and skills that all University of Sydney graduates must demonstrate on successful completion of an award course. As a future Sydney graduate, the set of qualities have been designed to equip you for the contemporary world.

GQ1 Depth of disciplinary expertise

Deep disciplinary expertise is the ability to integrate and rigorously apply knowledge, understanding and skills of a recognised discipline defined by scholarly activity, as well as familiarity with evolving practice of the discipline.

GQ2 Critical thinking and problem solving

Critical thinking and problem solving are the questioning of ideas, evidence and assumptions in order to propose and evaluate hypotheses or alternative arguments before formulating a conclusion or a solution to an identified problem.

GQ3 Oral and written communication

Effective communication, in both oral and written form, is the clear exchange of meaning in a manner that is appropriate to audience and context.

GQ4 Information and digital literacy

Information and digital literacy is the ability to locate, interpret, evaluate, manage, adapt, integrate, create and convey information using appropriate resources, tools and strategies.

GQ5 Inventiveness

Generating novel ideas and solutions.

GQ6 Cultural competence

Cultural Competence is the ability to actively, ethically, respectfully, and successfully engage across and between cultures. In the Australian context, this includes and celebrates Aboriginal and Torres Strait Islander cultures, knowledge systems, and a mature understanding of contemporary issues.

GQ7 Interdisciplinary effectiveness

Interdisciplinary effectiveness is the integration and synthesis of multiple viewpoints and practices, working effectively across disciplinary boundaries.

GQ8 Integrated professional, ethical, and personal identity

An integrated professional, ethical and personal identity is understanding the interaction between one’s personal and professional selves in an ethical context.

GQ9 Influence

Engaging others in a process, idea or vision.

Outcome map

Learning outcomes Graduate qualities
GQ1 GQ2 GQ3 GQ4 GQ5 GQ6 GQ7 GQ8 GQ9

This section outlines changes made to this unit following staff and student reviews.

Past feedback has been taken into account with the examples and assessments in this unit of study.

Disclaimer

The University reserves the right to amend units of study or no longer offer certain units, including where there are low enrolment numbers.

To help you understand common terms that we use at the University, we offer an online glossary.