Ma­na­geri­al Eco­nom­ics

Course content

Managerial economics deals with resource allocation and strategic decisions made by managers.

The course shows how microeconomic principles can be applied to company decision making. The emphasis is on stylized practical problems that may face anyone in a management position.

The three main sections of managerial economics are supply & demand analysis, pricing strategy, and the economics of information. Cost analysis is necessary to determine the most cost efficient method of production, including which components are better sourced from other companies. An understanding of costs, together with demand conditions, is also important in deciding how products should be priced. The second part of the course deals with demand, market segmentation, and the use of quality and quantity discrimination. In the final part the focus is on game theory and the role of asymmetric information and here we cover both economic incentives and bidding in auctions.