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HAS MAEC2 - Managerial Economics II* (Q2)

Faculty
Troels Troelsen and Michael Hedegaard
Course Coordinator
Eric Bentzen
Prerequisite/progression of the course
The students must document a level in English equal to TOEFL 575 and a level in mathematics equal to Danish level B.
Course content, structure and teaching
The course is planned to present models for decisions making with a focus on the service industry. The focus is on game theory, risk management, pricing, price discrimination, auctioning, selected managerial decision taking, investment and finance theory and business cases related to the curriculum.
7x Lecturing (L1-L7)
The course consists of 7 lectures (L1-L7) each of 3 x 45 minutes. The lectures will explore the core areas of the theory requiring a considerable amount of self-study. It is advisable with 4-6 hours of preparation for each lecture.
3x Active Work-shops (W1- W3)
Each Work-Shop is 3 lectures of each 45 min. The workshops consist of cases in theoretical and empirical problems and are part of the curriculum. Naturally these active learning sessions will correspond to the content and headlines of the previous lectures.
The workshops are very important for the learning process.
The learning objectives to achieve for this course are:
  • Demonstrate knowledge within managerial economics with emphasis on the curriculum and workshops presented and an understanding for managerial decision making
  • Identify situations where managerial decisions are to be made, analyze conditions and assumptions and use this information together with models, concepts and theories to set up logical and rational managerial economic decision model
  • Expand the students understanding for the use of the managerial economic terminology within the company’s different functional areas and decision making processes
  • More specifically, in the end of this course, the students should be able to:
  • Starting from oligopolistic market forms, set up assumptions for optimizing under different market forms, decision situations and restrictions and use this knowledge to set up relevant optimizing scenarios and models
  • Set up and apply multiple pricing models and a pricing strategy starting from different market forms
  • Understand and apply the pricing models of static, value based and dynamic pricing in different product, demand and supply situation
  • Account for the conditions for game theory and analyse different types of decisions using a game theory point of view to support decision making
  • Account for the fundamental elements of risk in a decision situation and set up different risk analysis to support decision making
  • Understand investment and finance theory and apply these models in cases implying decision making
Learning Objectives
The learning objectives to achieve for this course are:
  • Demonstrate knowledge within managerial economics with emphasis on the curriculum and workshops presented and an understanding for managerial decision making
  • Identify situations where managerial decisions are to be made, analyze conditions and assumptions and use this information together with models, concepts and theories to set up logical and rational managerial economic decision models
  • Expand the students understanding for the use of the managerial economic terminology within the company’s different functional areas and decision making processes.
More specifically, in the end of this course, the students should be able to:
  • Starting from oligopolistic market forms, set up assumptions for optimizing under different market forms, decision situations and restrictions and use this knowledge to set up relevant optimizing scenarios and models
  • Set up and apply multiple pricing models and a pricing strategy starting from different market forms
  • Understand and apply the pricing models of static, value based and dynamic pricing in different product, demand and supply situation
  • Account for the conditions for game theory and analyse different types of decisions using a game theory point of view to support decision making
  • Account for the fundamental elements of risk in a decision situation and set up different risk analysis to support decision making
  • Understand investment and finance theory and apply these models in cases implying decision making.
Type of examination, exam aids and assessment
Written 4 hour individual exam with open books
Exam aids:
For this open book exam, students are allowed bring language dictionaries as well as literature and notes. The only electronic device allowed at the exam is a non programmable calculator ( in other words, the following are NOT allowed: laptop, USB stick, mobile phone, etc).
Teaching methods
All students / groups have to answer and hand in all 3 workshop-papers, approximately 5 pages (maximum 7 pages). Each student has to present individually at least once during the course (on behalf of his/her group) an ideal part of the workshop (approx. 45 minutes in total per group, including a class discussion). The presentation has to be approved by the lecturer on an individual level. The studying and preparation efforts for presentations are supposed to last 15-20 hours per workshop.
Course literature
  • ME: Dominick Salvatore,”Managerial Economics in a Global Economy, 6.edition, Oxford University Press © 2007. (in total 672 pages incl. appendixes, glossary and indexes.). The curriculum is chapters: 8, 9, 10, 11, 13 and 14 and a few more parts.
  • (BF) Bjarke Fogh, “Pricing in Theory and Practice”, First edition, Handelshøjskolens Forlag 1994, ISBN 87-16-12229-7
  • Ove Hedegaard and Michael Hedegaard: Strategic Investment and Finance, DJØF Publishing Copenhagen 2008
  • Selected papers and supplementary readings part of the curriculum:
  • Srivastava, Anita: “Dynamic Pricing Models”. Ernst & Young, 2001
  • Cressman, George E., jr.: “Value based pricing saves the day”. The CEO refresher, 2002
  • Dolan, Robert J. and Moon, Youngme: ”Pricing and market making on theInternet”. Harvard Business School, rev. November 9, 2000
  • Tucker, Joanne M. and Massad, Victor J.: “Comparing bidding and pricing between in-person and online auctions”. Journal of product & Brand management 2000, vol. 9, nr. 5, pp. 325-332
  • Hof, Robert D.: “The E-bay Economy”. BusinessWeek.com, August 25, 2003
  • Troels Troelsen: Chap. VII: It projects & Risk Management, Note on Sitescape
  • Lecturing notes and workshops
Recommended literature
  • ME: Dominick Salvatore,”Managerial Economics (ME)”
  • Dominick Salvatore: Managerial Economics in A Global Economy, 6.edition, Thomson- South-Western College, © 2004. 672 pages incl. appendixes, glossary and indexes. Chapters: 8, 9, 10, 11, 13 and 14
  • (BF) Bjarke Fogh, “Pricing in Theory and Practice”, First edition, Handelshøjskolens Forlag 1994, ISBN 87-16-12229-7
  • Michael Hedegaard: Notes in Investment and Finance theory- available at site-scape during the course
Papers and supplentary readings part of the curriculum:
  • Srivastava, Anita: “Dynamic Pricing Models”. Ernst & Young, 2001
  • Cressman, George E., jr.: “Value based pricing saves the day”. The CEO refresher, 2002
  • Dolan, Robert J. and Moon, Youngme: ”Pricing and market making on theInternet”. Harvard Business School, rev. November 9, 2000
  • Tucker, Joanne M. and Massad, Victor J.: “Comparing bidding and pricing between in-person and online auctions”. Journal of product & Brand management 2000, vol. 9, nr. 5, pp. 325-332
  • Hof, Robert D.: “The E-bay Economy”. BusinessWeek.com, August 25, 2003
  • Troels Troelsen: Chap. VII: It projects & Risk Management, Note on Sitescape
  • Lecturing notes and workshops

Last updated by CBS Interntational 19/08/2010