Managerial economics
This is level two microeconomics course. It is less theoretical than a microeconomic principles course and more attention is given to topics which are relevant to managerial decision making.
- individual (one person) decision making under uncertainty, attitudes towards risk and the value of information
- theory of games and strategic decision making, including its applications to oligopoly, collusion among firms, product differentiation, entry deterrence and other market practices
- the effects of asymmetric information in areas such as bargaining, bidding and auctions, situations of moral hazard and adverse selection
- corporate governance in modern organisations
If you complete the course successfully, you should be able to:
- be prepared for Marketing and Strategy courses by being able to analyse and discuss consumer behaviour and markets in general
- be able to analyse business practices with respect to pricing and competition
- be able to define and apply key concepts in decision analysis and game theory.
- be able to confidently analyse different market structures and equilibrium outcomes in each of them
- Varian, H.R. Intermediate microeconomics: a modern approach. New York: W.W. Norton and Co., 2014. ninth edition [ISBN 9780393123968].
